The Central Auditing Authority recommended that the Egyptian Chemical Industries Company (KIMA) work on increasing its utilization of production capacity to improve operational economics, which significantly impacts product costs and profitability.

This comes after the Central Auditing Authority observed in its 2024/2025 performance evaluation report of KIMA that available production capacity increased in most production stages, while it remained stable in the urea fertilizer production stage (46.5% concentration) during 2024/2025. However, the utilization rate of available production capacity was low in the ammonium nitrate fertilizer production stage, reaching only 12.9%, and the production of ammonium nitrate (34.8% nitrogen) declined, along with a decrease in the utilization rate of production capacity in the nitric acid production stage to 20.4%.

The Authority also recommended that KIMA reduce the costs charged to products due to their significant impact on profitability. It noted that marketing costs rose to about EGP 786.5 million (representing 9.1% of sales) in 2024/2025, an increase of EGP 223.9 million compared to the previous fiscal year, and administrative and financing expenses rose to about EGP 1.821 billion (representing 21.2% of revenues) in 2024/2025, an increase of EGP 316 million or 21%.

The Authority criticized KIMA for not achieving the targeted production value at estimated prices in 2024/2025, as the actual production value at estimated prices reached about EGP 14.9 billion, a decrease of about EGP 961 million. This was due to lower actual production quantities of all products compared to budget targets, especially ammonium nitrate (34.8% nitrogen), which decreased by 59.1%, and liquid ammonia (an unfinished product), which decreased by 5.5%.

The report also pointed out that KIMA did not achieve the targeted sales value, which recorded EGP 8.6 billion in 2024/2025, down by about EGP 664 million or 7.2% from the targeted sales. This was due to lower actual quantities sold than targeted for most products, especially ammonium nitrate (34.8% nitrogen), which decreased by 66.5%, and urea fertilizer (an unfinished product), which decreased by 2.3%, in addition to a decrease in the average actual selling prices of most products compared to the target for the same year.

The Central Auditing Authority also noted that KIMA did not achieve the targeted export value in 2024/2025, with the actual value reaching about EGP 6.7 billion, a decrease of about EGP 679 million or 9.2% from the targeted exports of about EGP 7.4 billion. This was due to a 6.5% decrease in the quantity exported of urea fertilizer (46.5% nitrogen), amounting to about EGP 759 million.