BASF reports third-quarter results 2024

BASF today announced its financial results for the third quarter of 2024. EBITDA before special items grew to €1,6 billion, up 5% compared to the same period in 2023. Sales remained stable at €15,7 billion; operating profit (EBIT) fell to €250 million, down 36,5% year-on-year.

The company reported that the increase in EBITDA before special items was driven by higher volumes and margins in core businesses such as chemicals, materials, industrial solutions and nutrition and care segments. However, standalone businesses, especially in surface technologies and agricultural solutions, faced declining margins.

BASF’s global sales remained stable due to volume growth, especially in agricultural solutions. However, negative currency effects, mainly related to the Argentine peso and the Brazilian real, negatively impacted performance.

Operating cash flow was €2,1 billion, reflecting higher accounts payable reductions and lower cash releases from inventories. Free cash flow increased from €1,5 billion in 2023 to €569 million in 2024.

In the Agricultural Solutions segment, BASF faced challenges due to the closure of glufosinate ammonium production plants, which generated special costs that negatively impacted EBITDA. The segment recorded a 78,4% decrease in EBITDA compared to the previous year.

BASF stressed that it is committed to cost reduction programs that aim to achieve annual savings of €2,1 billion by the end of 2026. These programs, already underway, have achieved a cost reduction rate of around €800 million by September 2024.

For the remainder of 2024, BASF kept its financial outlook unchanged, with EBITDA before special items between €8 billion and €8,6 billion and free cash flow between €0,1 billion and €0,6 billion.