For 2014, Grupa Azoty posted a positive EBITDA of PLN 822,405 thousand and a net profit of PLN 265,055 thousand.
Year on year, these figures grew by PLN 93,544 thousand and PLN (443,513) thousand, respectively.
The table below compares the key items in the consolidated statement of profit and loss for 2014 and 2013.
| Item | 2014 | 2013 * restated | change | % change |
|---|---|---|---|---|
| Revenue | 9,898,476 | 9,821,023 | 77,453 | 0.8 |
| Cost of sales | (8,231,565) | (8,441,783) | 210,218 | (2.5) |
| Gross profit | 1,666,911 | 1,379,240 | 287,671 | 20.9 |
| Selling and distribution expenses | (581,145) | (447,750) | (133,395) | 29.8 |
| Administrative expenses | (739,977) | (707,766) | (32,211) | 4.6 |
| Profit from sales | 345,789 | 223,724 | 122,065 | 54.6 |
| Other operating expenses - net | (43,559) | (42,986)) | (573) | 1.3 |
| EBIT | 302,230 | 180,738 | 121,492 | 67.2 |
| Gain from a bargain purchase | - | 517,125 | (517,125) | x |
| Operating profit | 302,230 | 697,863 | (395,633) | (56.7) |
| Net finance income/(costs) | (12,631) | 17,536 | (30,167) | (172.0) |
| Share of profit of equity-accounted associates | 13,940 | 12,361 | 1,579 | 12.8 |
| Profit before tax | 303,539 | 727,760 | (424,221) | (58.3) |
| Tax expense | (37,731) | (18,439) | (19,292) | 104.6 |
| Net profit from continuing operations | 265,808 | 709,321 | (443,513) | (62.5) |
| Loss from discontinued operations | (753) | (554) | (199) | 35.9 |
| Net profit | 265,055 | 708,767 | (443,712) | (62.6) |
| EBIT | 302,230 | 180,738 | 121,492 | 67.2 |
| Depreciation and amortisation | 520,175 | 548,123 | (27,948) | (5.1) |
| EBITDA | 822,405 | 728,861 | 93,544 | 12.8 |
*2013 financial information was restated for the final settlement of acquisition of African Investment Group S.A. by Grupa Azoty POLICE, as presented in Note 2.3 to the annual consolidated financial statements of the Grupa Azoty Group for the twelve months ended December 31st 2014.
Source: Company data.
Sales revenue did not change significantly year on year. However, due to lower cost of sales (by 2.5%), gross profit on sales posted by the Grupa Azoty Group was higher than in the previous year by PLN 287,671 thousand. This amount was reduced by the cost of sales and administrative expenses, but it was still higher by PLN 122,065 thousand than in the previous year.
In 2014, the balance of other income and other expenses was negative, at PLN (43,559) thousand, which adversely affected EBIT; however, it was higher relative to the previous year by 67.2%.
While analysing the operating profit for 2014, which was lower than in 2013, it should be remembered that the result for 2013 was affected by the bargain purchase of shares in Grupa Azoty PUŁAWY, Grupa Azoty SIARKOPOL and AIG S.A. of Senegal (PLN 517,125 thousand).
The Group posted a net loss on financing activities.