BASF Reports €1.3 Billion Net Income for 2024 Financial Year

In a significant financial update, BASF has announced a net income of €1.3 billion for the fiscal year 2024, a sharp increase from just €225 million in 2023. This remarkable growth is attributed to a robust performance in the company's core business, which saw a 18% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding special items.

Despite a challenging market environment, BASF's overall EBITDA rose to €7.9 billion. The company's sales for 2024 reached €65.3 billion, down from €68.9 billion the previous year, largely due to competitive pricing pressures across all business segments. Notably, the agricultural solutions sector experienced a significant decline in earnings, influenced by weak demand for certain products.

BASF plans to propose a dividend of €2.25 per share for 2024, reflecting its commitment to providing attractive returns to shareholders. The company is also targeting an EBITDA of €8 billion to €8.4 billion for 2025, with expectations of improved performance across all business areas, except for the chemicals division, which may face challenges due to rising fixed costs.

The company's free cash flow is projected to be between €400 million and €800 million, based on anticipated operating cash flows of €5.6 billion to €6 billion. Furthermore, BASF is advancing its cost-cutting initiatives, aiming for annual savings of €2.1 billion by the end of 2026.