In the three months ended June 30th 2023, the Grupa Azoty Group generated consolidated revenue of PLN 3,491m, EBITDA of PLN -608m, and an EBITDA margin of -17.4%. During the period, the Grupa Azoty Group and other European producers faced macroeconomic headwinds due to Russia’s aggression against Ukraine, leading to reduced demand in the markets for the Group companies’ products and their downstream markets. Based on the production volume estimates published by the Grupa Azoty Group since the beginning of this year, we have observed an upward trend in fertilizer demand since the third quarter. If the trend continues, it is expected to have a positive impact on the Group’s financial results in 2023.

The Grupa Azoty Group has released estimated output figures for August, highlighting the third consecutive month of steady growth in nitrogen fertilizer production. In August, Group companies manufactured an estimated 251,000 tonnes of nitrogen fertilizers, a substantial rise from 140,000 tonnes in May. As regards compound fertilizers, in July the Group reported production of 47,000 tonnes, with estimates for August at 54,000 tonnes. This upward trend has been primarily driven by a marked improvement in demand, especially evident when compared to the demand patterns from the first half of 2023.

On August 31st 2023, Grupa Azoty signed waiver and amendment letters with 13 financing institutions whereby they agreed to waive certain covenants laid down in agreements on the provision of financing to Grupa Azoty and Grupa Azoty Police. The waiver was granted in response to requests submitted by these entities in June 2023. Under the waiver letters, consent was given to waive the net debt/EBITDA covenant as at the end of June 2023. The terms of the waiver letters do not differ from standard terms used in agreements of this type. Grupa Azoty will remain in continued dialogue with the financing institutions.

Grupa Azoty urgently advises caution regarding fraudulent video ads circulating online. This deceptive online content exploits Grupa Azoty’s name to lure internet users into clicking on links, falsely promising significant monetary rewards. Particularly misleading is the claim: “Poles earn from PLN 16,000 with Grupa Azoty.” These ads also improperly display Grupa Azoty’s logo and feature images of select Company facilities.