PhosAgro Group (“PhosAgro” or “the Company”) (MOEX, LSE: PHOR), a global leader in the production of phosphate-based fertilizers, has released its consolidated interim condensed financial results for the six months ending 30 June 2025. The first half of the year showcased strong operational growth, enhanced profitability, and effective debt management, underlining the company’s resilience and strategic execution amid evolving global market conditions.
Key Operational Highlights
PhosAgro maintained strong momentum in its production activities during the first half of 2025, delivering a 4.0% year-on-year increase in total agrochemical output, which reached 6.12 million tonnes. A significant driver of this growth was the 6.0% increase in the production of phosphate-based fertilizers and feed phosphates, which totaled 4.69 million tonnes during the period.
Sales volumes remained robust as well, with overall agrochemical product sales rising by 2.4% year-on-year to 6.24 million tonnes. Within this, phosphate-based fertilizer and feed phosphate sales rose 2.8%, aligning with the Company’s focus on high-margin product categories and demand trends in key agricultural markets.
Revenue and Profitability Surge
Revenue for the first half of 2025 stood at RUB 298.6 billion, reflecting a substantial 23.6% increase compared to the same period in 2024. This performance was largely driven by a recovery in average selling prices in international markets, particularly for phosphate- and nitrogen-based fertilizers. Rising demand in both developed and emerging markets helped offset currency-related pressures caused by the appreciation of the Russian rouble against the US dollar in the second quarter.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to RUB 94.6 billion, marking a 26.8% increase compared to 1H 2024. Despite the impact of exchange rate fluctuations, which put downward pressure on reported earnings due to non-cash currency translation losses, adjusted EBITDA climbed even more dramatically—rising 50.0% year-on-year to RUB 115.3 billion. The adjusted figure accounts for the non-monetary impact of rouble appreciation, offering a clearer view of underlying business performance.
The Company reported an EBITDA margin of 31.7% for the reporting period, underpinned by high operational efficiency, growing output of premium fertilizers, vertical integration across the value chain, and a flexible sales and distribution strategy tailored to global market shifts.
Cash Flow and Financial Strength
Free cash flow (FCF) in 1H 2025 more than doubled year-on-year to RUB 56.5 billion, driven by improved operating profit, elevated product prices, and higher sales volumes. An additional boost came from effective working capital management, which contributed over RUB 27 billion to the FCF figure. This robust cash generation enabled PhosAgro to advance its strategic and financial priorities without compromising balance sheet integrity.
The Company used its strong liquidity position to significantly reduce its debt burden. As of 30 June 2025, net debt was reduced to RUB 245.7 billion. This reduction was mainly attributed to scheduled repayments of Eurobonds and several bank loans, combined with the positive impact of a stronger rouble on foreign currency-denominated liabilities. As a result, PhosAgro’s net debt to EBITDA ratio improved to 1.25x—highlighting a healthy financial position that provides flexibility for future investment and growth initiatives.
In the face of a high key interest rate set by the Bank of Russia, this deleveraging effort is strategically important, as it helps reduce interest expenses and alleviates pressure on the Company’s balance sheet in a tightening monetary environment.
Capital Markets and Credit Profile
PhosAgro’s prudent financial management and robust performance continue to be recognized by the financial community. The Company holds the highest possible domestic credit ratings from major Russian agencies—AAA at the sovereign ceiling level—affirming its solid creditworthiness and low-risk profile.
Leveraging its strong market reputation, PhosAgro executed a successful bond placement in June 2025. In a pioneering transaction, the Company raised the equivalent of USD 400 million through the issuance of US dollar-denominated bonds settled in Russian roubles. The coupon rate on the bonds was set at 6.53% per annum, marking the lowest rate for any foreign-currency-denominated placement in the Russian primary market in 2025 to date. The transaction enabled PhosAgro to further optimize its public debt portfolio, replacing previously repurchased rouble-denominated bonds with more efficient instruments.
Such innovative capital market actions not only improve the Company’s financial flexibility but also demonstrate its ability to access funding under favorable conditions despite a volatile global financing environment.
Strategic and Operational Outlook
PhosAgro remains committed to sustaining growth across its core fertilizer segments while enhancing shareholder value through disciplined capital allocation, operational efficiency, and market responsiveness.
The Company’s focus on vertical integration—from raw material extraction to final product distribution—continues to provide a competitive advantage, particularly in controlling production costs and ensuring product quality. By expanding the share of high-margin fertilizer grades in its output and tailoring its commercial strategy to changing demand dynamics across key export destinations, PhosAgro is well-positioned to capitalize on global agricultural trends, including the growing emphasis on food security and sustainable farming.
Moreover, with ongoing capital investments in innovation and digitalization, the Company aims to enhance productivity and reduce its environmental footprint in the long term.PhosAgro Group (“PhosAgro” or “the Company”) (MOEX, LSE: PHOR), a global leader in the production of phosphate-based fertilizers, has released its consolidated interim condensed financial results for the six months ending 30 June 2025. The first half of the year showcased strong operational growth, enhanced profitability, and effective debt management, underlining the company’s resilience and strategic execution amid evolving global market conditions.
Key Operational Highlights
PhosAgro maintained strong momentum in its production activities during the first half of 2025, delivering a 4.0% year-on-year increase in total agrochemical output, which reached 6.12 million tonnes. A significant driver of this growth was the 6.0% increase in the production of phosphate-based fertilizers and feed phosphates, which totaled 4.69 million tonnes during the period.
Sales volumes remained robust as well, with overall agrochemical product sales rising by 2.4% year-on-year to 6.24 million tonnes. Within this, phosphate-based fertilizer and feed phosphate sales rose 2.8%, aligning with the Company’s focus on high-margin product categories and demand trends in key agricultural markets.
Revenue and Profitability Surge
Revenue for the first half of 2025 stood at RUB 298.6 billion, reflecting a substantial 23.6% increase compared to the same period in 2024. This performance was largely driven by a recovery in average selling prices in international markets, particularly for phosphate- and nitrogen-based fertilizers. Rising demand in both developed and emerging markets helped offset currency-related pressures caused by the appreciation of the Russian rouble against the US dollar in the second quarter.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to RUB 94.6 billion, marking a 26.8% increase compared to 1H 2024. Despite the impact of exchange rate fluctuations, which put downward pressure on reported earnings due to non-cash currency translation losses, adjusted EBITDA climbed even more dramatically—rising 50.0% year-on-year to RUB 115.3 billion. The adjusted figure accounts for the non-monetary impact of rouble appreciation, offering a clearer view of underlying business performance.
The Company reported an EBITDA margin of 31.7% for the reporting period, underpinned by high operational efficiency, growing output of premium fertilizers, vertical integration across the value chain, and a flexible sales and distribution strategy tailored to global market shifts.
Cash Flow and Financial Strength
Free cash flow (FCF) in 1H 2025 more than doubled year-on-year to RUB 56.5 billion, driven by improved operating profit, elevated product prices, and higher sales volumes. An additional boost came from effective working capital management, which contributed over RUB 27 billion to the FCF figure. This robust cash generation enabled PhosAgro to advance its strategic and financial priorities without compromising balance sheet integrity.
The Company used its strong liquidity position to significantly reduce its debt burden. As of 30 June 2025, net debt was reduced to RUB 245.7 billion. This reduction was mainly attributed to scheduled repayments of Eurobonds and several bank loans, combined with the positive impact of a stronger rouble on foreign currency-denominated liabilities. As a result, PhosAgro’s net debt to EBITDA ratio improved to 1.25x—highlighting a healthy financial position that provides flexibility for future investment and growth initiatives.
In the face of a high key interest rate set by the Bank of Russia, this deleveraging effort is strategically important, as it helps reduce interest expenses and alleviates pressure on the Company’s balance sheet in a tightening monetary environment.
Capital Markets and Credit Profile
PhosAgro’s prudent financial management and robust performance continue to be recognized by the financial community. The Company holds the highest possible domestic credit ratings from major Russian agencies—AAA at the sovereign ceiling level—affirming its solid creditworthiness and low-risk profile.
Leveraging its strong market reputation, PhosAgro executed a successful bond placement in June 2025. In a pioneering transaction, the Company raised the equivalent of USD 400 million through the issuance of US dollar-denominated bonds settled in Russian roubles. The coupon rate on the bonds was set at 6.53% per annum, marking the lowest rate for any foreign-currency-denominated placement in the Russian primary market in 2025 to date. The transaction enabled PhosAgro to further optimize its public debt portfolio, replacing previously repurchased rouble-denominated bonds with more efficient instruments.
Such innovative capital market actions not only improve the Company’s financial flexibility but also demonstrate its ability to access funding under favorable conditions despite a volatile global financing environment.
Strategic and Operational Outlook
PhosAgro remains committed to sustaining growth across its core fertilizer segments while enhancing shareholder value through disciplined capital allocation, operational efficiency, and market responsiveness.
The Company’s focus on vertical integration—from raw material extraction to final product distribution—continues to provide a competitive advantage, particularly in controlling production costs and ensuring product quality. By expanding the share of high-margin fertilizer grades in its output and tailoring its commercial strategy to changing demand dynamics across key export destinations, PhosAgro is well-positioned to capitalize on global agricultural trends, including the growing emphasis on food security and sustainable farming.
Moreover, with ongoing capital investments in innovation and digitalization, the Company aims to enhance productivity and reduce its environmental footprint in the long term.
