FINANCIAL
PERFORMANCE

Alexander Sharabaika Deputy CEO for Finance and International Projects at PhosAgro

In 2024, PhosAgro Group demonstrated strong financial performance by maintaining its robust progress despite external challenges.

The positive results across key metrics were achieved through high production efficiency and an increase in the production of high‑margin fertilizers and key inputs along with a flexible sales policy amid a recovery in global sales prices and changes in the rouble rate.

The Group’s revenue grew by 15.3% y‑o‑y to RUB 507.7 bln while EBITDA and adjusted net profit came in at RUB 177.0 bln and RUB 100.4 bln, respectively. EBITDA margin stood at 34.9%.

PhosAgro remains one of the industry’s most efficient players. The main way we ensure effective cost control is by emphasising strong vertical integration and sourcing the key inputs and materials from domestic suppliers.

The Company’s robust financial position is confirmed by the top rating of AAA from reputable agencies Expert RA and ACRA, which demonstrates that the Company is able to meet its debt obligations, including those denominated in foreign currencies, on time and in full.

As at the end of 2024, PhosAgro maintained a comfortable leverage position, with the net debt/EBITDA ratio at 1.84x.

One of the events after the reporting date that had an impact on the Company’s debt profile was the January 2025 redemption of the USD 500 mln Eurobond issue. This redemption was executed in full across both the Russian perimeter and outside of it.

In 2025, the Group will focus on repaying rather than refinancing its debt to reduce servicing costs and strengthen its positions as a top‑quality borrower with high credit ratings.

Revenue, RUB mln
Adjusted EBITDAAdjusted EBITDA is calculated as operating profit adjusted for depreciation and amortisation less foreign exchange gain or loss from operating activities., RUB mln
Net profit, RUB mln
In addition to increased sales volumes and continuously competitive cost levels, the strong financial results in 2024 were driven by the following market events:

an ongoing recovery of global demand for fertilizers following a crisis‑induced decline in 2021–2022;

limited commissioning of new phosphate‑based fertilizer capacities;

continued export restrictions in China and weak competition in Asia and Latin America;

diversification and expansion of sales geography, mainly to the Global South;

balanced markets and lower price volatility as fertilizer prices stabilised at high levels from mid‑2024.

MED 1, 2, 3

Revenue for 12M 2024 grew 15.3% y‑o‑y primarily due to increased sales of phosphate fertilizers, especially NPK (up more than 18% y‑o‑y) amid recovery in average global sales prices from early 2024 and a shift in the rouble rate.

Financial and operational highlights
Item 2022 2023 2024 Δ 2024/2023,%
Financial highlights
Revenue, RUB mln 569,527.00 440,304.00 507,689.00 15.30
EBITDA, RUB mln 257,879.00 183,038.00 177,005.00 (3.30)
EBITDA margin, % 45.30 41.60 34.90
Adj. EBITDA 266,947.00 168,352.00 170,553.00 1.31
Adj. EBITDA, RUB mln margin, % 46.90 38.20 33.60
Net profit, RUB mln 184,714.00 86,141.00 84,469.00 (1.94)
Adj. net profit, RUB mln 182,297.00 104,105.00 100,372.00 (3.59)
Adj. free cash flow, RUB mln 141,024.00 70,208.00 28,986.00 (58.71)
Item 31.12.2022 31.12.2023 31.12.2024 Δ 2024/2023,%
Net debt, RUB mln 180,338.00 223,207.00 325,356.00 45.76
Net debt / adj. EBITDA 0.68 1.33 1.91 43.61
Net debt / EBITDA 0.70 1.22 1.84 50.82
Added value, RUB mln 340,632.00 249,320.00 293,113.00 17.56
Net added value, RUB mln 311,093.00 217,038.00 256,567.00 18.21
Sales volume 2022 2023 2024 Δ 2024/2023,%
Phosphate‑based fertilizers and feed phosphates, kt 8,402.80 8,578.20 9,104.70 6.14
Nitrogen‑based fertilizers, kt 2,550.80 2,560.50 2,499.60 (2.38)
Total fertilizers, kt 10,953.60 11,138.70 11,604.30 4.18
Other products, kt 270.10 287.00 294.40 2.58
Total fertilizers and other products, kt 11,223.70 11,425.70 11,898.70 4.14
Revenue breakdown by key product, RUB bln
Item 2022 2023 2024 Δ 2024/2023,%
Phosphate and nitrogen‑based products 551.0 421.7 492.5 16.79
Other 18.5 18.6 15.2 (18.28)
Total 569.5 440.3 507.7 15.31
Cost of sales, RUB mln

MED 24

Item 2022 2023 2024 Δ 2024/2023,%
Amortisation and depreciation 26,979 29,374 33,207 13.0
Materials and services 54,178 65,738 79,112 20.3
• Transportation of phosphate rock 11,610 13,468 16,739 24.3
• Repair and maintenance expenses 12,002 15,865 19,382 22.2
• Feedstock processing services ‑ 4,341 6,269 44.4
• Drilling and blasting operations expenses 3,217 3,101 3,152 1.6
• Other services and materials 27,349 28,963 33,570 15.9
Raw materials 108,323 63,335 64,670 2.1
• Ammonia 19,550 11,533 14,343 24.4
• Sulphur and sulphuric acid 40,798 11,507 12,255 6.5
• Potash 27,418 22,444 17,574 (21.7)
• Natural gas 14,226 15,033 16,948 12.7
• Ammonium sulphate 6,331 2,818 3,550 26.0
Salaries and social contributions 19,667 26,265 35,169 33.9
Electricity 6,754 7,317 8,340 14.0
Fuel 6,459 5,754 7,215 25.4
Products for resale 15,599 16,056 12,675 (21.1)
Customs duties 1,420 13,207 34,139 158.5
Freight, port and stevedoring expenses 16,382 9,924 11,441 15.3
Russian Railways infrastructure tariff and operators’ fees 12,647 14,047 19,306 37.4
Other 610 599 885 47.7
Total 269,018 251,616 306,159 21.7

In 2024, the cost of sales grew by 21.7% to RUB 306.2 bln mainly due to export customs duties introduced in 2023 (up 158.5% y‑o‑y to RUB 34.1 bln), costs for materials and services (up 20.3% y‑o‑y to RUB 79.1 bln), and salaries and social contributions (up 33.9% y‑o‑y to RUB 35.2 bln).

In 2024, the Group’s adjusted EBITDA increased by 1.3% y‑o‑y to RUB 170.6 bln. Adjusted EBITDA margin for the reporting period came in at 33.6%,

driven by a rise in sales and sales prices. At the same time, the metric came under pressure from higher costs associated with the payment of export duties introduced in 2023, increased consumption of raw materials, and an expansion in staff costs.

Adjusted EBITDA in 2024 vs actual 2023, RUB bln
Adjusted EBITDA to adjusted FCF conversion in 2024, RUB bln

This was due to higher spending on export customs duties introduced in 2023, planned CAPEX related to major investment projects, higher interest expenses driven by an increase in the Bank of Russia’s key rate, and an outflow of funds to finance working capital in the second half of the year amid more shipments to Latin America and overall extended turnover of accounts receivable.

Capital investments (including capitalised repairs) for the year amounted to RUB 75 bln and were mainly focused on developing the ore and raw material base in Kirovsk, expanding production capacities in Balakovo, and maintaining production facilities across all process stages, from mining and processing of raw materials to the production of finished products.

Net debt as at 31 December 2024 increased y‑o‑y to RUB 325.4 bln. The depreciation of the rouble against the US dollar in 2024 and reassessment of the Company’s foreign currency debt using the year‑end exchange rate had a significant impact on the RUB‑denominated debt amount. The increase in net debt was also associated with reduced cash on the Company’s balance sheet following the payment of declared dividends for 2Q and 3Q 2024 at the year end.

With marginal growth of EBITDA, the net debt / adjusted EBITDA ratio increased to 1.91x as at 31 December 2024 from 1.33x a year earlier.

Despite the accessibility of debt markets, the Company will focus on debt repayment rather than refinancing throughout the year to reduce servicing costs and strengthen its positions as a top‑quality borrower with high credit ratings.

Loans and borrowings breakdown by rate type as at 31 December 2024, %
Loans and borrowings breakdown by currency as at 31 December 2024, %

Our commitment to maintaining high credit quality and ensuring timely debt servicing continues to be a priority for the Company.

Debt maturity profile, RUB bln
Item 2025 2026 2027 2028 2029 Total
Unsecured bank loans 96.7 19.1 – – – 115.8
Bonds 62.7 101.9 – 39.0 10.2 213.8
Interest payable 2.6 – – – – 2.6
Total debt 162.0 121.0 – 39.0 10.2 332.2

GRI 3‑3, 207‑1, 207‑2, 207‑3

In 2023, the Board of Directors approved a new version of PhosAgro’s Tax Strategy. The approach to taxation was developed in accordance with the Company’s Strategy to 2025 and combines social responsibility for developing and maintaining the well‑being of regions across PhosAgro’s footprint, minimising tax litigation risks, and maximising the use of the Company’s leverage toolkit stipulated by law for actively investing companies, in particular Investment Protection and Promotion Agreements (IPPAs) and Special Investment Contracts (SPICs).

Our approach to tax management, participation in shaping government tax policy, and organisational arrangements pertaining to the exercise of tax functions at PhosAgro is described in the Company’s Tax Strategy.

Country‑by‑country reporting, RUB mln

GRI 207‑4, MED 6, MED 7

Tax jurisdiction Unrelated party revenue Revenue from intra‑group transactions with other tax jurisdictions Profit/(loss) before income tax Income tax paid (cash basis) Income tax accrued Tax rates effective in any given jurisdiction apply to profit/loss before income tax. Reasons for the difference between corporate income tax accrued on profit/loss and the tax due if the statutory tax rate is applied to profit/loss before tax are as follows:
• intercompany transactions elimination;
• provisions accrued in accordance with IFRS (mostly allowance for expected credit losses);
• reduction in tax rate for certain Russian and foreign entities;
• items which are not deductible or assessable for taxation purposes, including charitable expenses;
• other differences (including the 2023 windfall tax in the amount of RUB 6,355 mln).
2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024
Russian Federation 440,639 440,304 507,689 106,420 0 0 157,360 114,603 109,044 41,393 36,132 20,953 39,932 34,527 25,477
Switzerland 96,268 0 0 27,436 0 0 57,850 0 0 331 0 0 764 0 0
Cyprus 0 0 0 4 0 0 (4,243) 0 0 2 0 0 2 0 0
Poland 8,088 0 0 0 0 0 4,943 0 0 48 0 0 235 0 0
Germany 7,446 0 0 0 0 0 5,242 0 0 2 0 0 129 0 0
France 7,045 0 0 0 0 0 5,541 0 0 5 0 0 94 0 0
Serbia 2,020 0 0 58 0 0 1,063 0 0 1 0 0 65 0 0
Lithuania 1,598 0 0 0 0 0 1,038 0 0 26 0 0 0 0 0
Romania 4,050 0 0 0 0 0 1,916 0 0 0 0 0 63 0 0
South Africa 2,343 0 0 0 0 0 1,643 0 0 0 0 0 174 0 0
Finland 29 0 0 0 0 0 (2) 0 0 3 0 0 3 0 0
Brazil 0 0 0 0 0 0 (42) 0 0 0 0 0 4 0 0
Singapore 0 0 0 0 0 0 (13) 0 0 0 0 0 0 0 0
Total 569,527 440,304 507,689 133,918 0 0 232,297 114,603 109,044 41,811 36,132 20,953 41,465 34,527 25,477
Tax jurisdiction Statutory tax rate, % Average headcount, people Tangible assets other than cash and cash equivalents Total employee remuneration Intra‑group loans received
2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024
Russia 20.00 20.00 20.00 19,846 21,839 23,617 320,961 367,857 430,233 55,318 53,745 70,948 103,233 137,911 213,642
Switzerland 12.05 – – 36 0 0 0 0 0 528 0 0 0 0 0
Cyprus 12.50 – – 30 0 0 0 0 0 57 0 0 0 0 0
Poland 19.00 – – 15 0 0 0 0 0 55 0 0 0 0 0
Germany 32.27 – – 7 0 0 0 0 0 33 0 0 0 0 0
France 25.00 – – 6 0 0 0 0 0 58 0 0 0 0 0
Serbia 15.00 – – 14 0 0 0 0 0 28 0 0 0 0 0
Lithuania 15.00 – – 4 0 0 0 0 0 20 0 0 0 0 0
Romania 16.00 – – 7 0 0 0 0 0 14 0 0 0 0 0
South Africa 28.00 – – 2 0 0 0 0 0 10 0 0 0 0 0
Finland 20.00 – – 1 0 0 0 0 0 2 0 0 0 0 0
Brazil 34.00 – – 7 0 0 0 0 0 32 0 0 0 0 0
Singapore 17.00 – – 3 0 0 0 0 0 8 0 0 0 0 0
Total 320,961 367,857 430,233 56,163 53,745 70,948 103,233 137,911 213,642