Azoty doubles net profits in Q1, above consensus

Poland's largest chemicals producer, Grupa Azoty, doubled its net profits in the first quarter and beat market consensus as mild winter boosted fertilizer sales while lower gas tariffs translated into higher margins, the company said on Wednesday. The state-controlled group closed its best quarter seasonally with of PLN 276 million, whereas experts expected a profit of PLN 203 million. Sales grew by 5 percent to PLN 2.84 billion. "We benefited from a mild winter that allowed farmers to use fertilizers earlier than usually, increasing our sales in this segment of the market," Andrzej Skolmowski, Grupa Azoty's deputy chief and chief financial officer said. Thanks to the depreciation of the Polish złoty, the group strengthened its competitiveness in international markets. What is more, lower prices of natural resources reduced the firm's costs and "boosted its performance in the export-oriented parts of the business," Skolimowski also said.