Good Q1 for the Group
The financial result of the first quarter of 2014 was a net profit of 149 million PLN for Grupa Azoty. The company may also take pride in reaching the 21st place in Rzeczpospolita daily ranking of 500 biggest enterprises in Poland.
Grupa Azoty made good use of the market factors present at the beginning of the year. Short and mild winter was important for the sales growth of nitrogen-based fertilizers. Implementing the system of Local Group Representatives proved to be another positive development, boosting the demand for our products in Poland and the European Union. Moreover, the quantity of fertilizers imported from Russia and Ukraine to EU countries fell following political turmoil in the East. As a result, demand for Grupa Azoty products soared.
Benefits of the consolidation
The process of deepening the consolidation processes in the Group is continued consistently. It was possible to obtain synergistic effects owing to joint procedures, such as a uniform trade policy in the fertilizers segment, and common policies of purchasing electricity, strategic resources and packaging materials. The value of synergistic effects was 46.5 million PLN in Q1 2014 and has amounted to as much as 136.5 million PLN since the launch of the consolidation.
The contribution of “PUŁAWY”
Grupa Azoty “PUŁAWY” is undoubtedly an important element of Grupa Azoty. The revenue of “PUŁAWY” in Q1 2014 reached 98 million PLN thanks to effective and efficient management of the whole capital Group comprising GZNF Fosfory, Agrochem Puławy, Agrochem Dobre Miasto, Zakłady Azotowe in Chorzów and other companies. Our Works remain the leader in this group, being responsible for over 80% of the revenue. So far, this has been the most successful quarter of 2013/2014 financial year in Grupa Azoty “PUŁAWY”.