BASF Reports Q2 2024 Performance Amid Market Challenges

BASF Reports Q2 2024 Performance Amid Market Challenges

(IN BRIEF) BASF SE reported its Q2 2024 results, showing steady EBITDA despite challenging market conditions. The company’s sales reached €16.1 billion, down from €17.3 billion last year due to lower prices and currency effects. EBITDA before special items remained at €2.0 billion, bolstered by significant gains in Industrial Solutions, Chemicals, and Nutrition & Care segments. However, Agricultural Solutions faced declines due to reduced volumes and prices. BASF confirmed its annual cost savings target of €2.1 billion by 2026. Free cash flow for the first half of 2024 was negative due to seasonal factors in Agricultural Solutions. The company reaffirmed its 2024 financial outlook, expecting EBITDA before special items between €8.0 billion and €8.6 billion.

(PRESS RELEASE) LUDWIGSHAFEN, 26-Jul-2024 — /EuropaWire/ — BASF SE has reported its financial results for Q2 2024, showing a mixed performance across its business segments. The chemical giant faced a difficult market environment, particularly in its Agricultural Solutions segment, but saw stronger earnings contributions from its chemical businesses.

Key Financial Highlights:

• Sales: Decreased by €1.2 billion to €16.1 billion, primarily due to lower prices, particularly in Surface Technologies, and negative currency effects.
• EBITDA: Remained steady at €2.0 billion, thanks to higher earnings in the Industrial Solutions, Chemicals, and Nutrition & Care segments, despite a decline in Agricultural Solutions.
• EBITDA Margin: Improved to 12.1%, up from 11.2% in Q2 2023.
• EBIT: Fell by €458 million to €516 million, impacted by special charges related to legal settlements and restructuring measures.
• Earnings per Share: Decreased to €0.48, down from €0.56 in Q2 2023, but adjusted earnings per share increased to €0.93.

Segment Performance:

• Chemicals: Sales rose by 6.0% to €2.8 billion, with a significant increase in EBITDA before special items to €444 million.
• Materials: Sales fell by 5.3% to €3.4 billion, with EBITDA before special items slightly decreasing to €448 million.
• Industrial Solutions: Sales increased by 4.8% to €2.1 billion, with a notable rise in EBITDA before special items to €320 million.
• Surface Technologies: Sales dropped by 23.4% to €3.2 billion, with a slight decline in EBITDA before special items to €366 million.
• Nutrition & Care: Sales decreased by 2.7% to €1.7 billion, but EBITDA before special items rose to €183 million.
• Agricultural Solutions: Sales fell by 13.2% to €1.9 billion, with a significant drop in EBITDA before special items to €135 million due to lower volumes and prices.
• Other: Sales increased by 8.9% to €870 million, with EBITDA before special items improving to €62 million.

Cost Savings and Investments: BASF’s cost savings programs are on track to achieve €2.1 billion in annual savings by 2026, with significant progress made in reducing costs at the Ludwigshafen site. Investments included spending on the new Verbund site in China.

Outlook for 2024: BASF maintains its forecast for the year, expecting EBITDA before special items to be between €8.0 billion and €8.6 billion, and free cash flow to range from €0.1 billion to €0.6 billion. The company also anticipates CO2 emissions of between 16.7 million and 17.7 million metric tons.

Overall, BASF navigates a challenging market environment with strategic cost savings and continued investment in high-growth areas.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 112,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €68.9 billion in 2023. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.

On July 26, 2024, you can obtain further information from the internet at the following addresses:

Forward-looking statements and forecasts

This release contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. BASF does not assume any obligation to update the forward-looking statements contained in this release above and beyond the legal requirements.

Media Contacts:

Jens Fey
Director, Corporate Media Relations
+49 621 60-99123
jens.fey@basf.com

Dr. Stefanie Wettberg
Senior Vice President Investor Relations
+49 621 60-48002
stefanie.wettberg@basf.com

SOURCE: BASF