BASF expects sales to fall to €16.1 billion in the second quarter of 2024

The BASF Group posted sales of €16.1 billion in the second quarter of 2024, down €1.2 billion from the prior-year quarter (€17.3 billion). Lower prices in all divisions, especially in Surface Technologies, were the main driver of this development. Negative currency effects and slight portfolio effects led to the decline in sales. Sales were positively impacted by slightly higher volumes, volume growth in the Industrial Solutions, Chemicals, Nutrition & Care and Materials divisions compensated for lower volumes in the Surface Technologies and Agricultural Solutions divisions.

“Overall, EBITDA before special items in the second quarter of 2024 was in line with our expectations and analyst consensus. We saw a continuation of the strong momentum from the first quarter, with good volume momentum in most businesses. Prices remain under pressure,” said Dr. Markus Kamieth, Chairman of the Board of Executive Directors of BASF SE, together with Dr. Dirk Elvermann, Chief Financial Officer, as they presented the second quarter 2024 figures.

Operating profit before depreciation, amortization and special items (EBITDA before special items) was €2.0 billion, on par with the second quarter of 2023. This was mainly due to significantly higher earnings in the Industrial Solutions, Chemicals and Nutrition & Care business units, mainly due to higher contribution margins. In contrast, earnings in the Agricultural Solutions business unit declined significantly, mainly due to lower volumes and lower prices for glufosinate. EBITDA before special items in the Materials & Surface Technologies business unit declined slightly. EBITDA before special items attributable to Other businesses increased significantly, mainly due to the release of bonus provisions. The EBITDA margin before special items was 12.1%, compared with 11.2% in the prior-year quarter.

EBITDA was €1.6 billion, compared with €1.9 billion in the prior-year quarter. EBITDA includes special items amounting to minus €394 million. Special charges mainly resulted from out-of-court settlement costs related to the multi-regional litigation in the United States regarding Aqueous Film Forming Foams (AFFF), which does not constitute any admission of liability, and restructuring measures. At €516 million, EBIT was €458 million below the prior-year quarter.

Sales in the Chemicals Division increased by 6% to €2.8 billion compared with the prior-year quarter. EBITDA before special items in the division increased significantly to €444 million compared with the prior-year quarter. Earnings in the Petrochemicals Division increased, mainly due to higher volumes. Higher fixed costs related to the construction of the Verbund plant in Zhanjiang, China, dampened earnings growth in the division. In the Intermediates Division, EBITDA before special items fell significantly, mainly due to lower price-related contribution margins. Slightly lower fixed costs had an offsetting effect.

Earnings per share in the second quarter of 2024 amounted to €0.48 (previous year: €0.56). Earnings per share adjusted for special items and amortization of intangible assets amounted to €0.93 (previous year: €0.72).