BASF Group releases preliminary financial figures for full year 2024
GERMANY – The BASF Group has reported preliminary sales of US$69.4 billion for the full year 2024, down from US$73.6 billion in 2023.
Analysts had anticipated the company’s EBITDA before special items to hit US$7.9 billion, which aligned with the reported figure, though it fell slightly short of BASF’s earlier forecast of US$8.0 billion.
The company’s free cash flow stood at US$0.7 billion, surpassing the analyst estimate of US$0.4 billion and exceeding its own projected range of US$0.1 billion to US$0.6 billion.
Sales for the year were impacted by negative currency effects despite a slight increase in volumes, as well as a steady recovery in sales prices throughout the year.
BASF’s EBITDA before special items for 2024 reached US$7.9 billion, slightly lower than the company’s previous estimate of US$8.0 billion to US$8.6 billion.
In comparison to 2023, where EBITDA before special items amounted to US$7.7 billion, the increase was driven primarily by higher earnings from core business activities.
However, earnings in the Chemicals segment weakened considerably during the final quarter of 2024, showing little improvement over the same period in 2023.
On the other hand, the Agricultural Solutions segment showed a marked increase in its contribution to EBITDA before special items during the final quarter.
Cash flows from operating activities are expected to amount to US$7.4 billion for 2024, down from US$8.7 billion in 2023.
While BASF’s free cash flow for 2024 reached US$0.7 billion, this represents a decline from the US$2.7 billion reported in 2023.
BASF’s EBIT for 2024 is anticipated to be US$2.1 billion, falling short of analysts’ consensus of US$3.2 billion and below 2023’s figure of US$2.2 billion.
Impairments related to battery materials in the Surface Technologies segment and restructuring costs across all segments contributed to the decline in EBIT.
The company is progressing with its restructuring efforts, which are expected to account for a significant portion of the special items, totaling US$1.9 billion in special charges.
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