Basf announces it’s performance forecast in 2023

On January 19, BASF released preliminary data for the full year 2023.

In 2023, BASF's sales are expected to be 68.902 billion euros, about 539.302 billion yuan, down 21.1% year-on-year; Earnings before interest and tax (EBIT) before special items was 3.806 billion euros, about 29.79 billion yuan, down 44.66% year-on-year; Net profit is expected to reach 225 million euros, about 1.761 billion yuan, an increase of 135.89%.

The official report will be released on February 23, 2024 CET.

Basf mentioned in the trailer: 

EBIT for Industrial Solutions, Materials and Agriculture solutions was slightly above the average analyst estimate; 

▪ In the chemicals segment, EBIT was well below the average analyst estimate. Mainly caused by unplanned factory closure and other reasons; 

In surface technology and Nutrition and care, EBIT was slightly below analyst consensus; 

▪ Elsewhere, EBIT was slightly below the average analyst estimate.

Overall, BASF's performance in 2023 fell short of expectations. Earnings fell sharply, mostly because soaring energy bills offset cost cuts and put pressure on production at Europe's largest chemicals company.

At present, BASF has taken a number of measures to deal with the decline in earnings and weak economic growth in its European home market, including the appointment of the experienced Marcus Kelley as the new chief executive officer, and the reduction of investment in the next few years by 4 billion euros.