LONDON (ICIS)--Poland's Grupa Azoty saw its first-quarter net profit shrink to zloty (Zl) 149m (€35.6m) compared to the Zl 410m recorded for the same period of last year, after experiencing difficult fertilizer and caprolactam (capro) markets, the company said on Thursday.
First-quarter sales revenues were flat year on year at Zl 2.7bn, it added.
The net profit figure for the first quarter of last year was boosted by Zl 174.3m in revaluation gains on the acquisition of largest Polish nitrogen fertilizer producer Zaklady Azotowe Pulawy (ZAP), Grupa Azoty said.
First-quarter earnings before interest and tax (EBIT) came in at Zl 182m against Zl 419m in the first three months of 2013, the company said.
Year on year fertilizer prices fell by an average of 6%, with nitrogen phosphorous potassium (NPK) fertilizer prices down by as much as 21%, it added.
The capro business continued to suffer from a fierce price war in Europe and increased supply from suppliers located in east Asia, Grupa Azoty, Europe’s second largest fertilizer producer, said.
(€1 = Zl 4.18)