Report on the annual results of Nitrogénművek 2020

nm_Today Nitrogénművek Zrt. published its Consolidated Annual Report for the year 2020. The year 2020 presented many challenges for the Company, however managed to achieve very strong results.

The Company’s EBITDA reached HUF 23.05 billion, an increase of 31% compared to the previous year results. Production increased by 24.5% compared to 2019 and reached a level of 1.23 million tons. Sales increased by 7.7% to HUF 94.7 billion. Profit after tax was HUF 3.59 billion, while in 2019 this value was HUF 1.06 billion. After the completion of the Company’s extensive investment program, the Company’s leverage ratio (Net Debt to EBITDA) quickly reached the planned level of 2.1x times.

Neither the company nor the group was significantly affected by the COVID-19 epidemic and its effects, despite the fact that there was, of course, an increase in spending on preventive measures. Agricultural activity remained very strong in all our markets, so fertilizer demand remained stable and even increased in many of our markets. Crop prices showed an upward trend, in 2020, which supported farmers’ profitability thus increased demand for fertilizers. The continuous improvement in production efficiency due to the investments the Company has made in previous years and the decrease in input prices for our feedstock (natural gas and energy) in 2020 contributed significantly to the overall profitability of the Company.

About Nitrogénművek Zrt
Nitrogénművek Zrt. Is one of the leading nitrogen-based fertilizer manufacturers and distributors of agricultural raw materials in the Central European region, headquartered in Pétfürdő, Hungary.
In Hungary, the Company is the sole producer of nitrogen-based fertilizers. This is an important sector not only in Hungary but in the EU as well in terms of turnover and employment. Nitrogénművek Zrt. is present in 15 countries, and employs over 700 employees. The Company has an 89-year-old production history.

Key Financial Figures 2020 Full Year
Revenues, in HUF million 94,765
EBITDA, in HUF million 23,051
EBITDA margin, (%) 24,30
Production Quantity, in metric ton 1,235.9
Earings Before Tax, in HUF million 4,179
Net Debt to EBITDA, multiple 2,05