PhosAgro did a great job in 2019
The Board of Directors of PhosAgro has rated the company’s operating and financial results for 2019 as a success.
Summing up the results of 2019, Andrey Guryev, Chairman of the Board of PhosAgro, noted:
“PhosAgro continues its steady development resulting from the potential laid down by the previous investment cycle as well as from ongoing work to achieve further efficiency gains across the company’s production facilities.
Vertical integration provides for a high degree of self-sufficiency in key inputs, which helped PhosAgro to retain its title of one of the most efficient enterprises in the industry globally. This has allowed us to feel comfortable during what has been a difficult period for many industry players, marked by low prices in the global fertilizer markets.
In 2019, PhosAgro enterprises produced the highest amount of mineral fertilizers and feed phosphates ever, i.e. over 9.5 million tons (6.1% growth by 2018), which is fully in line with the company’s previously announced plans. The output of phosphate rock and nepheline concentrate increased by 5.8% and reached a record milestone of 11.7 million tons.
Sales volumes to the priority domestic market and the CIS countries surpassed 3 million tons for the first time in history, rising by 10.5% and 65%, respectively. Today, according to the Russian Fertilizer Producers Association, 35% of all mineral fertilizers purchased by Russian farmers are manufactured by PhosAgro. Moreover, over the past year, we continued to work on expanding the country’s largest distribution network by launching three new regional centers. At present, PhosAgro sells its products directly to farmers in 71 regions of Russia from Kaliningrad to Vladivostok. PhosAgro has also strengthened its position in the key European market, where sales volumes grew by 28% to more than 2.6 million tons.
PhosAgro is an active participant in projects to create the Green One Standard for Russian agricultural products with improved environmental characteristics. In particular, in support of the Green One Standard, on the initiative of PhosAgro, eco-labeling was developed and supported by all members of the Russian Fertilizer Producers Association, confirming the high environmental attributes of Russian-made mineral fertilizers. In January, we presented an eco-label and a new packaging design for our fertilizers to participants and visitors of the Green Week 2020 international agricultural exhibition held in Berlin to reflect the idea of environmental friendliness and participation in the values of the Russian Green One Standard.
PhosAgro considers environmental safety to be an overarching priority. Last year, the company allocated more than 9 billion rubles (almost $ 142 million) for environmental protection.
The Board of Directors, after discussing the financial results of PhosAgro under IFRS, recommended that the Annual General Meeting of Shareholders decide on the payment of dividends in the amount of 2.33 billion RUR (approximately $ 36.7 million) at the rate of 18 RUR (28 cents) per ordinary share (or 6 RUR (9.5 cents)per global depositary receipt). Thus, the total amount of declared dividends for 2019 may remain at the level of 2018 when the global pricing environment for fertilizers was significantly better, and amount to 24.9 billion rubles (approximately $ 392.5 million).”