AB Lifosa announces its results in the year 2020: changes in global fertilizer market led to a decline in revenue
Lifosa AB announces 2020 financial results: Global fertilizer market dynamics prompt a decline in revenue
In 2020, revenue from the main activities of the company Lifosa, a Kėdainiai-based manufacturer of phosphorus fertilizers, was EUR 315.2 million, which is 10.6% down on 2019. This change was chiefly caused by a global slump in prices for diammonium phosphate, the main product of the company. The average price of these fertilizers decreased by 16.2% last year.
In 2020, the audited net profit of the company was EUR 16.8 million, a 6.4% reduction compared to 2019. Earnings before interest, taxes, depreciation and amortization (EBITDA) was EUR 37.9 million, representing a 2.6% rise compared to the previous year. Lifosa contributed EUR 32.5 million of various taxes to the state and municipal treasury.
“Last year, the situation on the global fertilizer market reached its lowest point in the cycle: in the first half of the year, we experienced the lowest prices of phosphate fertilizers over the last decade. The prices started to rise from the middle of the year and continued to grow until the end of the year, but the decrease had its impact on the company’s performance. In almost six decades of Lifosa's operation, we have experienced many similar market fluctuations. In addition, according to the forecasts the demand and the price of phosphate fertilizers will continue to grow this year, thus, we are optimistic about the future prospects. Especially since we are consistently investing in sustainable, efficiency-enhancing and resource-saving solutions and the production of advanced fertilizers,” said Rimantas Proscevičius, CEO of Lifosa AB.
Mr. R. Proscevičius emphasized that compared to the year 2019, the company produced 12.5% less diammonium phosphate, focusing on the manufacture of alternative products. Last year Lifosa produced one-third (33%) more of urea phosphate, a modern, fully water-soluble fertilizer. Over the same time, production of sulfur-enriched ammonium phosphate grew by as much as 122.1% compared to 2019. Production of modern monoammonium phosphate fertilizers, launched in 2017, was also expanded, increasing by 12.2% year on year.
Compared to 2019, production of aluminum fluoride was up 21.2%. There were no significant changes to volumes of other products such as sulfur and phosphoric acid, nor feed phosphates.
Last year, the company's investments in sustainable development exceeded EUR 18.3 million. The major part of these investments was allocated to reconstruction of one production line into the universal NP (S) + B + Zn fertilizer production line. In addition, Lifosa constructed a 1 MW solar power plant within its territory. The plant currently produces around 6 percent of the total amount of additional electricity purchased by the company.
About 98% of Lifosa's products are exported. Last year, Europe remained the main export market for the company's products: most products were sold in France, Germany, the United Kingdom, Belgium, Ireland, Ukraine, Spain and Poland. Lifosa products are also sold in North and South America and Africa.
Last December Lifosa's complex mineral fertilizers with sulfur and microelements (boron and zinc) NP (S) + B + Zn were recognised by the Lithuanian Confederation of Industrialists as the Lithuanian Product of the Year.
Lifosa AB is part of EuroChem Group AG, registered in Switzerland. EuroChem is a leading global fertilizer producer and one of the world's largest mineral agrochemical companies. The Group has production, logistics and trading operations in more than 40 countries, with more than 27,000 employees.
