‘In addition to financial improvement, the Agro and Plastics Segments increased their combined sales volume by over 200,000 tonnes year-on-year. This demonstrates the Group’s ongoing recovery across individual segments, despite an unfavorable market environment—especially intensified imports from outside the European Union. We expect the recent decision by the European Parliament regarding tariffs on fertilizers from Russia and Belarus to have a positive impact on the profitability of our Agro business,’ commented Andrzej Skolmowski, Acting President of the Management Board. ‘In parallel with our ongoing recovery efforts and dialogue with financial institutions, we are finalizing work on a new Strategy, which will present the future direction and development priorities of Grupa Azoty,’ he added.

Since March 2024, Grupa Azoty’s Management Board has been implementing a recovery program built on six key pillars:

Pillar I - Consistent improvement in financial results achieved by strengthening core businesses across all segments, optimizing costs, and making effective use of Group assets, including marine logistics infrastructure at Grupa Azoty Police and Grupa Azoty Fosfory.
Pillar II – constructive dialogue with financial institutions
Pillar III – pursuing external financial support mechanisms
Pillar IV – discussions regarding  the Polimery Police project, a major investment that has significantly strained the Group’s financial capacity
Pillar V – active involvement in shaping legal provisions affecting the Group’s business environment.
Pillar VI – transformation of the business model under the AZOTY BUSINESS program aimed at building an integrated, cost-effective Capital Group with a strong market position in Europe.

In Q1 2025, the Group faced a sharp increase in natural gas prices, which were 71% higher compared to the same period last year. Electricity prices also rose. By contrast, unit coal consumption costs declined significantly year-on-year.

Imports from eastern markets had a major negative impact on overall results.

Key Performance Drivers by Segment in the first quarter of 2025 compared to the same period of the previous year across its core segments:

Agro Segment

The Agro Segment saw a year-on-year increase in sales volumes of approximately 200,000 tonnes. This was accompanied by a modest rise in product prices and a significant spike in natural gas costs.

A major factor impacting performance—both for Grupa Azoty and other EU producers—remains the continued surge in fertilizer imports from Russia and Belarus. Grupa Azoty has long taken steps to mitigate this expansion, particularly in the Polish market. The Group’s intensified sales efforts and expanded product portfolio have paid off: overall sales volumes rose by 18% year-on-year, and nitrogen fertilizer sales grew by 22%.

During the reporting period, gas prices initially trended upward, followed by a clear downward trend mid-quarter. The average TTF spot price for Q1 was EUR 46.9/MWh, up 71% year-on-year. Sulfur prices also rose. Other raw material prices remained largely stable, while potash prices declined. Unit coal consumption costs dropped significantly. Fertilizer product prices saw a slight increase in nitrogen fertilizers and a slight decline in compound fertilizers.

The Agro Segment’s EBITDA margin reached 3.6% in Q1 2025, up 2.4 percentage points year-on-year.

Chemicals Segment

The Chemicals Segment experienced a year-on-year decrease in sales volumes, a rise in product prices, and lower raw material prices—except for gas, which became more expensive.

The main challenge continues to be the lack of a significant recovery in global economic conditions and weak demand for chemical products. The sulfur market in Q1 2025 was marked by declining refinery output and rising global demand, as well as concern over potential tariffs. The OXO alcohols and plasticizers markets saw strong product availability but low demand. The titanium dioxide market remained in a holding pattern, with demand expected to pick up in the coming months. Product prices in most categories increased year-on-year, led by technical-grade urea and sulfur. The steepest price drop occurred in plasticizers. Although raw material prices mostly declined year-on-year, rising gas prices negatively affected the segment’s performance.

Due to the ongoing supply-demand imbalance, Grupa Azoty Puławy did not resume melamine production during Q1.

The Chemicals Segment posted an EBITDA margin of minus 10.2% for Q1 2025, an improvement of 4.7 percentage points year-on-year despite remaining in negative territory.

Plastics Segment

The Plastics Segment recorded a 10,000-tonne year-on-year increase in sales volume in Q1 2025, alongside falling prices for products (polyamide and polypropylene) and raw materials (phenol and propane).

Base demand across most polyamide and polypropylene-consuming industries in Europe remained low but stable. Only the packaging industry showed strong demand—particularly important for the polypropylene market. The key polyamide application sector—automotive—continued to struggle, exacerbated by uncertainty around U.S. trade tariffs and potential retaliatory measures.

Due to market conditions, Grupa Azoty Puławy did not resume caprolactam production in Q1.

The Plastics Segment recorded an EBITDA margin of minus 23.4% in Q1 2025, down 10.0 percentage points from the previous year. The main drag on results came from Grupa Azoty Polyolefins, largely due to underutilized production capacity linked to installation startup and tuning, as well as seasonal weakness in the polypropylene market.