Azoty group estimates Q3 2024 net loss at PLN 226 mln, EBITDA loss at PLN 120 mln

Listed chemical group Azoty estimates net loss at PLN 226 million (EUR 51.9 mln) in the third quarter of 2024 versus PLN 743 million (EUR 170.7 mln) net loss in the prior year period, the company said in a press release. According to Azoty's estimates, the group has recorded an EBITDA loss of 120 million (EUR 27.6 mln).

According to the estimates, in the third quarter of 2024, Azoty generated consolidated sales revenues of PLN 3.085 billion (EUR 708.6 mln).

The EBITDA margin was minus 3.9 percent in the period.

"The improvement in the results of the third quarter of this year in relation to the prior year period is the result of ongoing corrective measures," said Grupa Azoty's deputy CEO Andrzej Skolmowski, quoted in the press release.

"First and foremost, cost optimisation and business strengthening, including the renegotiation of key agreements with suppliers and business partners and the search for new business opportunities," he added.

The company reported that the third quarter of 2024 was another period of weak global and European economic conditions, resulting in insufficient demand for fertiliser and chemical industry products.

Azoty Group reported that in the agro segment in the third quarter 2024, compared to the prior year period, the main determinant of results was fertiliser imports from Russia and Belarus, affecting both a decrease in product prices and a decrease in sales volumes.

The segment's EBITDA margin generated in the third quarter of 2024 was minus 4.4 percent, improving by 3.2 percentage points from the prior year period.

In the chemistry segment, the company observed a year-on-year increase in total sales volume, with a simultaneous decrease in product and raw material prices. The EBITDA margin of the segment was minus 6.7 percent, up by 21.9 percentage points year on year.

In the plastics segment, the third quarter of 2024 saw a year-on-year increase in production and sales volumes and a decrease in raw material prices (phenol) with an increase in the price of the main product, natural polyamide. The segment's margin was minus 16.1 percent, improving by 17.9 percentage points compared to the prior year period.

During the nine months of 2024, Azoty group generated consolidated sales revenue of PLN 9.828 billion (EUR 2.3 bln) and EBITDA loss of PLN 299 million (EUR 68.7 mln).

The company stated that these figures are estimates and may be subject to change. The final results will be presented in the consolidated quarterly report, which the company is slated to publish on Wednesday, November 6.

seb/ ao/