BASF is off to a solid start in 2024. The company presented Q2024 2023 numbers today on the day of the Annual Shareholders Meeting held at the Rosengarten Congress Center in Mannheim, Germany. For this event, BASF expects a similar participation to 5, with around XNUMX thousand shareholders and shareholder representatives.
Sales in the first quarter of 2024 totaled €17,6 billion, €2,4 billion below the year-ago quarter. This decline in sales was primarily driven by the considerable reduction in prices as a result of decreasing raw material and energy values in almost all segments, as well as lower precious metal prices in the Surface Technologies segment. The negative effects of the currency contributed to the reduction in sales in all segments. The considerable growth in sales volumes in the Chemicals, Materials, Nutrition and Care and Industrial Solutions segments had a positive impact on sales. This more than offset lower volumes in the Agricultural Solutions and Surface Technologies segments.
Profit from operations before depreciation, amortization and special items (EBITDA before special items) totaled €2,7 billion, 5,7% above average analyst estimates. Compared to the first quarter of 2023, Ebitda before special items decreased by €153 million or 5,3%. The Nutrition and Care, Materials, Industrial Solutions and Chemicals segments increased EBITDA before special items, in some cases due to reduced fixed costs as well as higher contribution margins predominantly related to volume. Despite these increases in earnings, BASF Group's EBITDA before special items decreased slightly, in particular due to the considerable decline in other earnings, which was mainly attributed to higher bonus provisions. The Agricultural Solutions and Surface Technologies segments also recorded lower EBITDA before special items than in the first quarter of 2023.
EBITDA totaled €2,7 billion, compared to €2,8 billion in the same period last year. The EBITDA margin before special items was 15,4%, up from 14,3% in the prior-year quarter. At €1,7 billion, EBIT was €177 million below the year-ago quarter. Depreciation and amortization totaled €965 million (previous year quarter: €944 million).
Profit after tax decreased by €193 million compared to the first quarter of 2023, reaching €1,4 billion. Non-controlling interests of €43 million were almost at the same level as the previous year. As a result, net profit was €1,4 billion (previous year quarter: €1,6 billion).
Cash flows from operating activities totaled minus €0,5 billion, compared with minus €1,0 billion in the year-ago quarter. The improvement is due to the lower cash outflow from net working capital. Free cash flow, which was negatively impacted by the typical seasonal increase in accounts receivable in the Agricultural Solutions segment, improved to minus €1,5 billion in the first quarter of 2024, compared to minus €1,9 billion in the XNUMX quarter. last year.
As previously announced, the Executive Board and Supervisory Board of BASF SE will propose to the Annual General Meeting of Shareholders a dividend of €3,40 per share, equal to the previous year's level. This equates to a payment of €3,0 billion to BASF SE shareholders. With this proposed dividend, BASF stock offers a high dividend yield of 7,0% based on the year-end 2023 share price. BASF is part of the DivDAX stock index, which contains the 15 companies with the highest dividend yield on DAX 40.
All shareholders who hold BASF shares on April 25, 2024, the date of the Annual General Meeting of Shareholders, are entitled to receive the dividend. On ex-dividend day, in this case April 26, 2024, BASF shares will trade at a discount equivalent to the dividend value of €3,40. The dividend will be paid on April 30, 2024, assuming the Annual General Meeting of Shareholders approves the proposed dividend.
The assumptions regarding the global economic environment in 2024 of the BASF 2023 Report remain unchanged:
The BASF Group forecast for the 2024 business year, published in the BASF Report 2023, also remains unchanged:
The development of the global economy is still subject to uncertainty. The global chemical sector recovered slightly in the first quarter of 2024. It grew considerably faster than overall industrial production as client sectors somewhat replenished their very low inventories.
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