Acron

Akron Group is one of the leading vertically integrated producers of mineral fertilizers in Russia and the world.

Aktivs

Chemical enterprises of the Group are located Veliky Novgorod in (PJSC "Akron") and (Smolensk region PJSC "Dorogobuzh"). The Group conducts its own production of phosphate raw materials in (Murmansk region JSC, JSC North-West Phosphate Company SZFK) and implements a project for the development of a potash deposit in the Perm Territory (CJSC Verkhnekamskaya Potash Company, CJSC VKK), has its own transportlogistic infrastructure, which includes three port terminals in the Baltic and sales networks in and. Russia China

Subsidiary of PAO Akron - North Atlantic Potash Inc. (NAP) - Holds permits for geological surveys in 11 areas of the Raporite Prairie potassium salt deposit in Saskatchewan, Canada. Akron also owns a minority stake (19.8%) in the Polish company Azota Group, one of the largest manufacturers of chemical products in Europe.

History and Performance Indicators

2023

Revenue reduction by 30% to RUB 179.46 billion

Fertilizer producer Akron in 2023 raised 179.46 billion rubles against 257.19 billion rubles a year earlier. In dollars, revenue decreased by 44%, to $2.11 billion. The net profit of the Russian company also decreased in 2023 - by 61%, to 35.87 billion rubles from 91.03 billion rubles in 2022. Such data appear in the consolidated financial statements under IFRS, which was published at the end of March 2024.

From the materials of "Akron" it follows that by the end of 2023 the group's net debt amounted to 25.1 billion rubles, having decreased by 36% on an annualized basis. In dollar terms, this indicator decreased by 50%, to $280 million. Net debt/EBITDA for 2023 rose from 0.29 to 0.37; in dollar terms, this indicator increased from 0.28 to 0.35.

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EBITDA at the end of 2023 decreased by 50%, to 68.74 billion from 136.32 billion rubles. In dollar terms, EBITDA decreased by 59% to $806 million.

According to the group's own data, in 2023 Akron increased production of its main products by 0.5%, to 8.38 million tons. Sales decreased by 3% and amounted to 8.3 million tons.

In 2023, 91.3% of Akron's revenue was provided by sales of products to the foreign market. The share of exports in sales of mineral fertilizers was 96.5%, the report said.

The revenue of the Smolensk plant "Dorogobuzh" in 2023 increased by 2% and amounted to 44.6 billion rubles. The gross profit of the enterprise decreased by 5%, to 17.3 billion rubles. Net profit fell by 32%, to 6.4 billion rubles.

By the end of 2023, the Akron Group owns two plants for the production of mineral fertilizers and a mining and processing plant in Russia with a total production capacity of over 8 million tons of final products.^[1]

Growth in fertilizer production by 1.1% to 7.05 million tons

In 2023, Akron produced 7.05 million tons of fertilizers, which is 1.1% more than a year earlier. Most of this volume (4.63 million tons) fell on nitrogen fertilizers, in this segment the output decreased by 0.5%. The production of complex fertilizers increased by 4.4% and reached 2.42 million tons. The company published such data on January 22, 2024.

It also follows from the materials of Akron that the total output of the group's commodity products in 2023 increased slightly - by 0.5%, to 8.4 million tons. Gross ammonia output in 2023 increased by 5% and reached 2.95 million tons. Apatite concentrate production decreased by 0.5% to 1.16 million tonnes.

Akron produced 7.05 million tons of fertilizers

The production of ammonium nitrate in 2023 decreased by 5.5% compared to the value of one year ago - to 1.97 million tons. The production of the carbamide-ammonia mixture decreased even more - by 12.4%, to 1.11 million tons. The Akron mixed fertilizer market recorded a 41% decline in production by the end of 2023 (up to 80 tons).

The Akron Group of Companies is one of the world's largest producers of mineral fertilizers. As of December 31, 2023, the main production enterprises of the group are Akron, Dorogobuzh and North-West Phosphate Company. In addition, the Akron group owns two plants for the production of mineral fertilizers and a mining and processing plant in Russia with a total production capacity of over 8 million tons of final products.

In the previously published report of Akron under IFRS, according to the results of the first half of 2023, it was stated that net profit for the period decreased almost four times to 19 billion rubles. The company's EBITDA decreased 2.2 times and amounted to 36.8 billion rubles. Revenue decreased 1.6 times to 87.9 billion rubles.^[2]

2022: Revenue growth by 25% to RUB 180.6 billion

Akron completed 2022 with revenue received during this 12-month period in the amount of 180.6 billion rubles, which is 25% more than a year earlier. At the same time, the net profit of the producer of mineral fertilizers decreased by about 13%, to 71.7 billion rubles. Such data on RAS were released at the end of March 2023.

According to TASS, citing materials from Akron, the company's gross profit in 2022 increased by 25.5%, to 120 billion rubles, profit before taxes decreased by about 6%, to 92.1 billion rubles.

Mineral fertilizer producer's net profit down about 13%

According to Akron's reporting, in 2022, the 86% of its revenue ensured the sale of products to foreign markets. Over the year, the manufacturer exported more than 87% of the fertilizers produced, 60% of ammonia. At the same time, as follows from the report, the company considers the Russian market a priority and will increase supplies to domestic consumers.

The volume of production of Akron mineral fertilizers in 2022 increased by 3%, to 6.99 million tons, the company said. At the same time, the production of the main types of commercial products decreased by 1.6%, to 8.35 million tons.

Ammonia production decreased by 3.2%, to 2.8 million tons, nitrogen fertilizers - increased by almost 9%, to 5.5 million tons, ammonium nitrate - by 7.5%, to 2.4 million tons, urea - by more than 24%, to 1.8 million tons. The output of complex fertilizers decreased by 10%, to 2.36 million tons.

Akron Group - by the end of 2022, one of the world's largest producers of mineral fertilizers, includes producers of fertilizers and orgsintez products Akron and Dorogobuzh. The group owns two plants for the production of mineral fertilizers and a mining and processing plant in Russia with a total production capacity of over 8 million tons of final products.^[3]

2018: Consolidated revenue of the Group under IFRS - RUB 108,062 million

In 2018, the Group's sales amounted to 7.3 million tonnes of core products. Deliveries were carried out in 67 countries of the world. The Group's main markets are Russia, Brazil, Europe and the United States.

In 2018, the Group's consolidated revenue under IFRS amounted to RR 108,062 million (US $1,723 million) and net income amounted to RR 13,318 million (US $212 million).

Shares of Akron PJSC are included in the quotation list of the first level of the Moscow Exchange, global depositary receipts are traded on the London Stock Exchange (ticker AKRN). The staff of the Akron Group employs about 11 thousand people.

2017: Revenue - RUR 94,342 million

At the end of 2017, the revenue of the Akron group amounted to 94,342 million rubles, net profit - 14,260 million rubles. The number of employees as of 2017 was 10,883.

2016

Sales volume - 6.4 million tons of products, revenue - 89,359 million rubles.

In 2016, the Group's sales amounted to 6.4 million tonnes of various products. Deliveries were made to 63 countries of the world. The Group's main markets are Russia, Brazil, Europe and the United States.

In 2016, the Group's consolidated revenues under IFRS amounted to RR 89,359 million (US $1,333 million) and net income amounted to RR 25,525 million (US $381 million). Shares of Akron PJSC are included in the quotation list of the first level of the Moscow Exchange, global depositary receipts are traded on the London Stock Exchange (ticker AKRN). The staff of the Akron Group includes more than 11 thousand people. 1 723

Sale of the Hunji-Akron plant

In August 2016, the Hongji-Akron plant was sold to an investment and industrial company from Hong Kong.

2008: Obtaining a license for the development of the Talitsky Verkhnekamsky deposit of potassium-magnesium salts

In 2008, Vyacheslav Kantor's Akron was licensed for the development of the Talitsky section of the Verkhnekamsk deposit of potassium-magnesium salts, also promising.

2005

Establishment of the North-West Phosphorus Company

In 2005, as part of the strategy to provide the holding with its own raw materials, Vyacheslav Kantor established a subsidiary of Akron - CJSC North-West Phosphate Company (SZFK) - for the development of deposits in the Murmansk region.

Entry into the "Akron" of the Chinese association "Hongji-Akron"

In 2005, the Chinese association Hunji-Akron became part of Akron, giving Vyacheslav Kantor and his holding access to the Chinese market.

2000

In the early 2000s, the company adopted a vertical integration strategy, as a result of which the group included logistics and sales companies, as well as raw material production enterprises.

1994: JSC Drogobuzh joined Akron JSC

In 1994, Akron's assets expanded - Vyacheslav Kantor's holding included Drogobuzh OJSC, another former state enterprise for the production of mineral fertilizers, this time from the Smolensk region.

1993: Creation of Akron JSC. Entry of Azot state-owned enterprise into Akron JSC

In 1993, an environmental audit led Vyacheslav Kantor and his team to the Azot state-owned enterprise - the Novgorod plant for the production of mineral fertilizers. Seeing the prospects in a decadent enterprise, Kantor created Akron Joint Stock Company and took part in a regional checking auction, where he bought more than 31% of Nitrogen's shares. So Kantor laid the foundation for what will become Akron PJSC in the future - one of the world's largest producers and distributors of complex agricultural chemistry.

1992

After the collapse of the Soviet Union, both enterprises - NPO Azot and PJSC Dorogobuzh - were privatized, production was reorganized, the economic activity and management structure of enterprises were reorganized, and a long-term reconstruction and development program was adopted.

1990

The main production enterprises of the Akron Group - PJSC Akron (founded in 1961 as the Novgorod Chemical Plant, in 1975 it was transformed into the Novgorod Production Association Azot - NPO Azot) and PJSC Dorogobuzh (founded in 1965) - formed the basis of the Soviet industry for the production of mineral fertilizers.

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