Double Q1 earnings for Azomures

Chemical fertilisers producer Azomures Targu Mures logged Q1 net profit worth 145 billion ROL (4.4 million dollars), almost double the profit derived in the same period of the previous year, 77 billion ROL. This year, the company benefits from additional orders that reach about 35 million dollars, due to the subsidy programme aimed at small farmers, backed by the Romanian State. The delivery of fertilisers had been initially scheduled for completion by May, but the term was extended to the end of this month. Following this extension, the impact of the governmental programme over the company’s financial situation will be felt in the second quarter, as well. The company’s turnover was only 5% higher in the first quarter as compared to the same period of the previous year, while inflation in this period came to 17%. The domestic market of chemical fertilisers, one of the main domains wherein Azomures operates, has registered a considerable drop in demand over the last few years, which affected almost all chemical fertiliser producers. However, Azomures succeeded in maintaining a relatively constant turnover level through a rise in exports, but this generated a slump in profit by almost two thirds. The chemical plant’s turnover last year reached 123 million dollars, slightly lower year-on-year. For this year, the company’s S&R budget, however, points to total revenues worth 5,520 billion ROL, 30% higher than the revenues posted last year, while its profit is supposed to rise by 60% in nominal terms, to 188 billion ROL. ZF