Quarterly Report • Oct 31, 2023
Quarterly Report
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To achieve net-zero emissions by 2050, BASF is increasingly replacing fossil fuels with renewable energy and electrifying its processes. A reliable supply of electricity from renewable sources at competitive prices is key for this. Together with Vattenfall and Allianz, BASF recently inaugurated one of the world's largest offshore wind farms – another milestone on the road to climate-neutral chemical production. The offshore wind farm Hollandse Kust Zuid is expected to be fully operational by 2024 and will have a total capacity of 1.5 gigawatts. BASF will utilize about half of the generated electricity to supply several production sites in Europe – and thus reduce the carbon footprint of its products.
| Key Figures BASF Group – Q3 2023 | 4 |
|---|---|
| Business Review | 5 |
| BASF Group | 5 |
| Significant events | 5 |
| Results of operations | 6 |
| Net assets | 7 |
| Financial position | 7 |
| Outlook | 9 |
| Chemicals | 10 |
| Materials | 11 |
| Industrial Solutions | 12 |
| Surface Technologies | 13 |
| Nutrition & Care | 14 |
| Agricultural Solutions | 15 |
| Other | 16 |
| Regions | 17 |
| Selected Financial Data | 18 |
| Statement of Income | 18 |
| Balance Sheet | 19 |
| Statement of Cash Flows | 21 |
| Selected Key Figures Excluding Precious Metals | 22 |
Sales Q3 2023
€15.7 billion (prior-year quarter: €21.9 billion)
EBIT before special items Q3 2023
€0.6 billion (prior-year quarter: €1.3 billion)
Sales by region (by location of company) Q3 2023
Outlook for the 2023 business year unchanged (forecast published in the BASF Half-Year Financial Report 2023):
| Q3 | January–September | ||||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | +/– | 2023 | 2022 | +/– | ||
| Sales | million € | 15,735 | 21,946 | –28.3% | 53,031 | 68,003 | –22.0% |
| Income from operations before depreciation, amortization and special items | million € | 1,545 | 2,325 | –33.5% | 6,354 | 9,361 | –32.1% |
| Income from operations before depreciation and amortization (EBITDA) | million € | 1,363 | 2,255 | –39.6% | 6,081 | 9,359 | –35.0% |
| EBITDA margin | % | 8.7 | 10.3 | − | 11.5 | 13.8 | − |
| Depreciation and amortizationa | million € | 969 | 960 | 0.9% | 2,846 | 2,930 | –2.9% |
| Income from operations (EBIT) | million € | 394 | 1,294 | –69.6% | 3,235 | 6,429 | –49.7% |
| Special items | million € | –181 | –53 | –239.5% | –279 | –76 | –267.5% |
| EBIT before special items | million € | 575 | 1,348 | –57.3% | 3,514 | 6,505 | –46.0% |
| Income before income taxes | million € | –38 | 1,239 | 2,743 | 5,775 | –52.5% | |
| Income after taxes | million € | –209 | 952 | 1,950 | 4,452 | –56.2% | |
| Net income | million € | –249 | 909 | 1,812 | 4,220 | –57.1% | |
| Earnings per shareb | € | –0.28 | 1.01 | 2.03 | 4.67 | –56.5% | |
| Adjusted earnings per shareb | € | 0.32 | 1.77 | –81.9% | 2.96 | 6.85 | –56.8% |
| Research and development expenses | million € | 481 | 545 | –11.7% | 1,534 | 1,681 | –8.7% |
| Personnel expenses | million € | 2,592 | 2,742 | –5.5% | 8,404 | 8,772 | –4.2% |
| Employees (September 30) | 112,085 | 111,768 | 0.3% | 112,085 | 111,768 | 0.3% | |
| Assets (September 30) | million € | 82,603 | 97,030 | –14.9% | 82,603 | 97,030 | –14.9% |
| Investments including acquisitionsc | million € | 1,316 | 1,155 | 13.9% | 3,703 | 2,866 | 29.2% |
| Equity ratio (September 30) | % | 48.8 | 50.6 | − | 48.8 | 50.6 | − |
| Net debt (September 30) | million € | 18,872 | 18,942 | –0.4% | 18,872 | 18,942 | –0.4% |
| Cash flows from operating activities | million € | 2,686 | 2,301 | 16.7% | 3,848 | 3,239 | 18.8% |
| Free cash flow | million € | 1,465 | 1,295 | 13.1% | 488 | 738 | –33.9% |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Due to the share buyback program terminated in February 2023, the weighted average number of outstanding shares in the third quarter of 2023 was 892,522,164 and 892,680,462 in the period from January to September 2023. The weighted average number of outstanding shares was 897,371,740 in the third quarter of 2022 and
904,411,442 in the period from January to September 2022.
c Additions to property, plant and equipment and intangible assets
On July 28, 2023, BASF announced the completion of the carve-out of its mobile emissions catalysts and precious metals services busi ness. The entity is named BASF Environmental Catalyst and Metal Solutions (ECMS) and headquartered in Iselin, New Jersey. BASF had first announced its intention to carve out ECMS in Decem ber 2021. ECMS has operations in 15 countries with over 4,500 employees and 20 production sites. The entity is a global leader in mobile emissions catalysts and produces these for gasoline, diesel and off-road vehicles, motorcycles, small engines and other applica tions. ECMS is also a prominent supplier of precious metal products, trading and services and is the world's leading recycler of precious metals from spent mobile emissions catalysts. The ECMS business will continue to be reported as part of the Catalysts division in the Surface Technologies segment.
The divestiture of BASF's nickel-based catalysts production site in De Meern, Netherlands, to IQatalyst B.V., a subsidiary of ASC Investment Sarl, Luxembourg, which had been announced in July 2022, was closed on August 31, 2023. BASF had decided to divest the site and the related Fischer-Tropsch and FOCAT 1 portfolio to increase the efficiency of its global chemical catalysts production network. The site was part of BASF's Catalysts division until the completion of the divestiture process. The transaction mainly cov ered production plants, including the associated infrastructure and inventories, as well as the transfer of the employees working at the site.
Sales in the third quarter of 2023 amounted to €15,735 million, down by €6,211 million compared with the prior-year period. The decline was mainly due to considerably lower prices, primarily in the Materials, Chemicals and Surface Technologies segments. Higher prices in the Agricultural Solutions segment had a positive effect. In addition, sales performance was weighed down by considerably lower volumes in all segments. Currency effects also had a slightly negative impact on sales. Negative portfolio effects slightly dampened sales performance, primarily in the Industrial Solutions segment, due to the divestiture of the kaolin minerals business as of September 30, 2022.
gies segment slightly increased earnings.
| Volumes | –9.4% | |||
|---|---|---|---|---|
| Prices | –14.4% | |||
| Currencies | –4.2% | |||
| Portfolio | –0.3% | |||
| Sales | –28.3% |
Million €
| 2023 | 2022 | ||
|---|---|---|---|
| Income after taxes | –209 | 952 | |
| – Special itemsa | –472 | –569 | |
| + Amortization, impairments and reversals of impairments on intangible assets | 152 | 163 | |
| – Amortization, impairments and reversals of impairments on intangible assets contained in special items | − | − | |
| – Adjustments to income taxes | 89 | 48 | |
| – Adjustments to income after taxes from discontinued operations | − | – | |
| Adjusted income after taxes | 325 | 1,635 | |
| – Adjusted noncontrolling interests | 43 | 46 | |
| Adjusted net income | 282 | 1,589 | |
| Weighted average number of outstanding sharesb | in thousands | 892,522 | 897,372 |
| Adjusted earnings per share | € | 0.32 | 1.77 |
Million €
a Includes special items in net income from shareholdings of –€291 million for the third quarter of 2023 and –€515 million for the third quarter of 2022.
b Due to the share buyback program terminated in February 2023, the weighted average number of outstanding shares in the third quarter of 2023 was 892,522,164 and 897,371,740 in the third quarter of 2022.
Special items in EBIT amounted to –€181 million in the third quarter of 2023, mainly due to restructuring measures. These led to net expenses of €132 million.
Income from operations (EBIT) before special items1 declined by €772 million compared with the prior-year quarter, to €575 million. Earnings development resulted primarily from the considerably lower EBIT before special items of the Chemicals, Nutrition & Care, Industrial Solutions and Materials segments. Earnings also declined significantly in Other. The Agricultural Solutions segment increased EBIT before special items considerably, while the Surface Technolo-
At €394 million, EBIT2 was considerably below the prior-year quarter (€1,294 million). This figure includes income from integral companies accounted for using the equity method, which declined by €31 million to €46 million, mainly due to the lower earnings contribution from BASF-YPC Company Ltd., Nanjing, China.
Compared with the third quarter of 2022, income from operations before depreciation, amortization and special items (EBITDA before special items)3 decreased by €780 million to €1,545 million and EBITDA3 declined by €892 million to €1,363 million.
| 2023 | 2022 | |
|---|---|---|
| EBIT | 394 | 1,294 |
| – Special items | −181 | –53 |
| EBIT before special items | 575 | 1,348 |
| + Depreciation and amortization before special items | 959 | 974 |
| + Impairments and reversals of impairments on property, plant and equipment and intangible assets before special items |
11 | 4 |
| Depreciation, amortization, impairments and re versals of impairments on property, plant and equipment and intangible assets before special items |
970 | 977 |
| EBITDA before special items | 1,545 | 2,325 |
6
2 The calculation of income from operations (EBIT) is shown in the Statement of Income on page 18 of this quarterly statement.
3 For an explanation of this indicator, see Results of Operations from page 56 onward of the BASF Report 2022
| Million € | ||
|---|---|---|
| 2023 | 2022 | |
| EBIT | 394 | 1,294 |
| + Depreciation and amortization | 959 | 974 |
| + Impairments and reversals of impairments on property, plant and equipment and intangible assets |
10 | –13 |
| Depreciation, amortization, impairments and re versals of impairments on property, plant and equipment and intangible assets |
969 | 960 |
| EBITDA | 1,363 | 2,255 |
Net income from shareholdings declined by €346 million compared with the prior-year quarter to –€245 million, mainly due to a €368 million lower earnings contribution from non-integral companies accounted for using the equity method. This contribution included special charges of €291 million for impairments at Wintershall Dea AG and in connection with the planned adjustment of the company structure.
The financial result declined by €30 million compared with the third quarter of 2022. This was primarily attributable to the €46 million lower interest result, mainly due to higher interest expenses for financial indebtedness.
Overall, income before income taxes decreased by €1,277 million compared with the prior-year period to –€38 million in the third quarter of 2023. The tax rate of –451.0% resulted primarily from the high negative income from entities accounted for using the equity method and deferred taxes not recognized on tax loss carryforwards in Germany.
Income after taxes declined by €1,161 million compared with the prior-year quarter to –€209 million. The slight decrease in noncontrolling interests to €40 million, compared with €42 million in the prior-year quarter, was primarily due to lower earnings contributions from the BASF Shanshan companies in China, which were largely compensated for by a higher earnings contribution from BASF PETRONAS Chemicals Sdn. Bhd., Kuala Lumpur, Malaysia.
Earnings per share amounted to –€0.28 in the third quarter of 2023 (prior-year quarter: €1.01). Earnings per share adjusted1 for special items and amortization of intangible assets amounted to €0.32 (prior-year quarter: €1.77).
Total assets amounted to €82,603 million as of September 30, 2023, €1,870 million below the 2022 year-end figure.
Noncurrent assets rose by €1,113 million. This was primarily driven by the €914 million increase in property, plant and equipment, mainly due to additions which exceeded depreciation by around €1.2 billion. Currency effects had an offsetting effect. Higher other receivables and miscellaneous assets resulted in particular from increased defined benefit assets. The €255 million increase in the carrying amounts of non-integral shareholdings accounted for using the equity method, mainly due to the higher carrying amount of Wintershall Dea as a result of increased fair values of derivatives, was largely offset by a decrease in the carrying amounts of integral companies accounted for using the equity method of almost the same amount. This decrease resulted primarily from a lower carrying amount of BASF-YPC Company Ltd., Nanjing, China, due to dividend payments. Intangible assets decreased by €387 million compared with the prior year-end figure, mainly due to amortization, which exceeded additions.
Current assets declined by €2,983 million compared with December 31, 2022, to €34,440 million. This development was mainly due to a €1,562 million decrease in other current receivables and miscellaneous assets, primarily due to lower precious metal trading items and lower tax refund claims. Inventories were reduced by €952 million compared with December 31, 2022. Trade accounts receivable declined by €237 million.
Equity decreased by €652 million to €40,270 million compared with December 31, 2022. This decline was mainly due to the dividends paid to the shareholders of BASF SE in the second quarter, which amounted to €3,035 million. This was countered by a net income of €1,812 million in the first nine months of 2023. In addition, other comprehensive income rose by €582 million, mainly from actuarial gains and higher fair values of derivatives.
Noncurrent liabilities amounted to €25,035 million as of September 30, 2023, €1,925 million above the 2022 year-end figure. This was primarily due to the €2,509 million increase in noncurrent financial indebtedness resulting from the issue of three eurobonds with a nominal value totaling €1.5 billion and the taking up of loans amounting to around €1.5 billion in the first half of 2023. The reclassification of a 500 million eurobond from noncurrent to current financial indebtedness as well as exchange rates and interest had an offsetting effect. The €395 million decrease in pension provisions was mainly due to higher interest.
Current liabilities decreased by €3,142 million to €17,298 million compared with December 31, 2022, largely as a result of the decrease in trade accounts payable of around €2.5 billion. Other liabilities declined by €678 million, mainly due to lower advance payments received. Current financial indebtedness was €135 million below the prior year-end figure. The scheduled repayment of a U.S. dollar bond and a eurobond with a carrying amount totaling approximately €1.8 billion exceeded the €1.3 billion increase in commercial paper at BASF SE and the aforementioned reclassification of a bond from noncurrent to current financial indebtedness. Higher current provisions resulted mainly from higher provisions for rebates.
Net debt1 rose by €2,605 million compared with December 31, 2022, to €18,872 million.
Million €
| September 30, 2023 | December 31, 2022 | |
|---|---|---|
| Noncurrent financial indebtedness | 17,680 | 15,171 |
| + Current financial indebtedness | 3,709 | 3,844 |
| Financial indebtedness | 21,389 | 19,016 |
| – Marketable securities | 226 | 232 |
| – Cash and cash equivalents | 2,291 | 2,516 |
| Net debt | 18,872 | 16,268 |
Cash flows from operating activities were €2,686 million in the third quarter of 2023, above the figure of the prior-year quarter of €2,301 million.
Net income decreased by €1,158 million compared with the prior-year period.
Cash released from net working capital improved considerably by €1,229 million compared with the third quarter of 2022, amounting to €1,899 million. The improvement was primarily due to the reduction in inventories, which released cash of €488 million, after an inventory build-up had tied up €834 million in cash in the prior-year period. In addition, cash outflow from the reduction in operating liabilities and other provisions decreased to €271 million in the third quarter of 2023, while the decline in liabilities had led to cash outflows of €858 million in the prior-year period. This was offset by a reduction in released cash from receivables to €1,682 million (prior-year quarter: released cash amounting to €2,362 million), which was primarily due to the lower inflow from trade accounts receivable in the current year as a result of the sales performance. The mainly price-related change in the precious metal trading position also contributed to the decline.
The change in miscellaneous items resulted in a cash inflow of €67 million in the third quarter of 2023. In the previous year, by contrast, cash outflows amounted to €238 million.
Cash flows from investing activities amounted to –€1,225 million in the third quarter of the current year, a decline of €544 million compared with the prior-year quarter. This was due in particular to a €215 million increase in payments for intangible assets and property, plant and equipment as well as a €230 million decrease in payments received for divestitures. In addition, net payments received for financial assets and securities decreased by €99 million.
Cash flows from financing activities amounted to –€1,667 million in the third quarter of 2023, €520 million above the prior-year figure. Payments received for the additions to financial and similar liabilities were €12 million lower than in the prior-year quarter at €1,378 million. By contrast, payments made for repayments of financial and similar liabilities decreased by €249 million to €2,948 million. In addition, €233 million was spent on the share buyback program in the third quarter of 2022, while no own shares were acquired in the third quarter of 2023.
Free cash flow1 totaled €1,465 million in the third quarter of 2023, after €1,295 million in the prior-year period.
Million €
| 2023 | 2022 | |
|---|---|---|
| Cash flows from operating activities | 2,686 | 2,301 |
| – Payments made for property, plant and equipment and intangible assets |
1,221 | 1,006 |
| Free cash flow | 1,465 | 1,295 |
BASF enjoys good credit ratings, especially compared with competitors in the chemical industry. Moody's confirmed its rating of A3/P-2/outlook stable on September 4, 2023. Standard & Poor's adjusted its rating of A/A-1/outlook negative to A-/A-2/outlook stable on August 2, 2023. Fitch maintained its rating of A/F1/outlook stable on November 30, 2022.
There was still very little momentum in the global economy in the third quarter of 2023. Global industrial production was nearly stagnant, with subdued demand for consumer durables in particular. Construction activity suffered from high construction and financing costs, especially in the United States and Europe. Demand in the automotive industry increased moderately compared with the very strong prior-year quarter and thus remained stable compared with the second quarter of 2023.
In the European Union, gross domestic product is expected to have stagnated in the third quarter, compared with both the previous quarter and the prior-year quarter. Germany in particular recorded negative development in the manufacturing sector in the third quarter of 2023. Production in the energy-intensive industries stabilized at a low level, and there has been no considerable recovery to date. While declining inflation rates and rising wages partially supported private consumption, the further rise in interest rates and the uncertain macroeconomic environment dampened companies' propensity to invest and private households' willingness to spend.
The economy in the United States remained stable in the third quarter despite the now high level of interest rates. Data available so far points to a growth in gross domestic product at a similarly high rate compared with the previous quarter. While industrial growth is expected to have declined slightly compared with the prior-year quarter, it could increase slightly compared with the second quarter of 2023. Production in the chemical industry was down slightly compared with the prior-year quarter but recovered somewhat compared with the previous quarter. Data on the development of consumer confidence and retail sales as well as the stable labor market point to solid growth in private consumption.
Growth in China accelerated again after a weak second quarter. The slow recovery in industrial production continued. According to official data, growth in the chemical industry in China increased considerably. Private consumer expenditure on consumer goods and services grew in the third quarter. However, weak export demand and the continuing decline in activity in the construction sector continue to weigh on the Chinese economy.
In the fourth quarter of 2023, BASF expects production in the global chemical industry to further stabilize. However, the macroeconomic outlook remains extremely uncertain in the current interest rate policy environment and in view of increasing geopolitical risks. Rising raw materials prices in particular could weigh on demand and margins.
Against this background, BASF has maintained its assessment of the global economic environment in 2023 (growth assumptions from BASF's Half-Year Financial Report 2023; values rounded to half percentage points):
The BASF Group's forecast for the 2023 business year published in the Half-Year Financial Report 2023 also remains unchanged:
If chemical production does not stabilize, there are risks from a further decline in volumes and a stronger price reduction than expected. Opportunities may arise from a positive development in demand and margins.
For the remaining risk factors, the statements on opportunities and risks made in the BASF Report 2022 continue to apply overall. According to the company's assessment, neither existing individual risks nor the sum of individual risks pose a threat to the continued existence of the BASF Group.
For more information on other opportunities and risks, see page 157 onward of the BASF Report 2022
Segment data – Chemicals
Million €
Compared with the prior-year period, sales1 declined considerably in both operating divisions of the Chemicals segment.
| Chemicals Petrochemicals | Intermediates | ||
|---|---|---|---|
| Volumes | –9.9% | –12.1% | –4.1% |
| Prices | –22.9% | –22.5% | –23.8% |
| Currencies | –3.2% | –2.7% | –4.4% |
| Portfolio | – | – | – |
| Sales | –35.9% | –37.3% | –32.3% |
The sales performance of the segment was primarily attributable to a significant decline in demand, which resulted in lower prices and volumes in both operating divisions. In the Petrochemicals division, prices decreased considerably in all regions and value chains, while in the Intermediates division prices declined mainly in the butanediol and derivatives as well as in the amines businesses.
Sales volumes in the Petrochemicals division were considerably lower, particularly in Europe for steam cracker products, styrene monomers and in the propylene value chain. A significant increase in volumes in Asia Pacific compared with the weak prior-year quarter was unable to compensate for this decline. In the Intermediates division volumes decreased slightly overall.
Currency effects, largely relating to the U.S. dollar and the Chinese renminbi, also had a negative impact on sales.
| Q3 | January–September | |||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | +/– | 2023 | 2022 | +/– | |
| Sales to third parties | 2,430 | 3,793 | –35.9% | 7,942 | 12,145 | –34.6% |
| of which Petrochemicals | 1,733 | 2,764 | –37.3% | 5,653 | 8,670 | –34.8% |
| Intermediates | 697 | 1,029 | –32.3% | 2,289 | 3,476 | –34.2% |
| Income from operations before depreciation, amortization and special items | 252 | 527 | –52.1% | 1,071 | 2,625 | –59.2% |
| Income from operations before depreciation and amortization (EBITDA) | 252 | 526 | –52.1% | 1,076 | 2,620 | –58.9% |
| Depreciation and amortizationa | 206 | 203 | 1.1% | 578 | 590 | –2.1% |
| Income from operations (EBIT) | 46 | 322 | –85.7% | 499 | 2,031 | –75.4% |
| Special items | –1 | –1 | 38.9% | 9 | –5 | |
| EBIT before special items | 47 | 323 | –85.6% | 490 | 2,035 | –75.9% |
| Assets (September 30) | 11,107 | 11,493 | –3.4% | 11,107 | 11,493 | –3.4% |
| Investments including acquisitionsb | 616 | 412 | 49.4% | 1,672 | 954 | 75.3% |
| Research and development expenses | 19 | 21 | –10.0% | 65 | 71 | –9.1% |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
Income from operations (EBIT) before special items1 was considerably below the figure of the third quarter of 2022 in both operating divisions. The decline in EBIT before special items in the Petrochemicals division was mainly the result of lower volumes and margins, particularly in Europe. In addition, unplanned outages of the steam crackers in Port Arthur, Texas, and Nanjing, China, in September 2023 weighed down the division's earnings development. In the Intermediates division, the decline in earnings was mainly attributable to decreased margins and lower contributions from shareholdings accounted for using the equity method. Reduced fixed costs and lower raw materials and energy prices had an offsetting effect in both divisions.
1 For sales, "slight" represents a change of 0.1%–5.0%, while "considerable" (and its synonyms) applies to changes of 5.1% and higher. "At prior-year level" indicates no change (+/–0.0%). For earnings, "slight" means a change of 0.1%–10.0%, while "considerable" (and its synonyms) is used for changes of 10.1% and higher. "At prior-year level" indicates no change (+/–0.0%).
Sales in the Materials segment decreased considerably in both operating divisions compared with the prior-year quarter.
| Materials | Performance Materials |
Monomers | |
|---|---|---|---|
| Volumes | –5.7% | –7.3% | –4.2% |
| Prices | –18.6% | –9.5% | –26.9% |
| Currencies | –4.7% | –5.1% | –4.3% |
| Portfolio | – | – | – |
| Sales | –29.0% | –22.0% | –35.5% |
The decline in sales was mainly attributable to lower prices as a result of a decrease in demand and raw materials prices. In the Monomers division, prices declined considerably, particularly in the polyamide and ammonia value chains. The Performance Materials division recorded lower prices in all business areas compared with the third quarter of 2022.
Currency effects, mainly relating to the Chinese renminbi and the U.S. dollar, had a slightly negative impact on sales performance.
Million €
| Q3 | January–September | |||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | +/– | 2023 | 2022 | +/– | |
| Sales to third parties | 3,349 | 4,715 | –29.0% | 10,801 | 14,399 | –25.0% |
| of which Performance Materials | 1,765 | 2,262 | –22.0% | 5,558 | 6,604 | –15.8% |
| Monomers | 1,584 | 2,453 | –35.5% | 5,243 | 7,794 | –32.7% |
| Income from operations before depreciation, amortization and special items | 360 | 489 | –26.3% | 1,270 | 2,317 | –45.2% |
| Income from operations before depreciation and amortization (EBITDA) | 310 | 484 | –35.9% | 1,186 | 2,293 | –48.3% |
| Depreciation and amortizationa | 203 | 212 | –4.5% | 604 | 622 | –2.8% |
| Income from operations (EBIT) | 108 | 272 | –60.4% | 582 | 1,671 | –65.2% |
| Special items | –50 | –4 | –83 | –24 | –239.0% | |
| EBIT before special items | 158 | 277 | –43.0% | 665 | 1,696 | –60.8% |
| Assets (September 30) | 10,363 | 12,096 | –14.3% | 10,363 | 12,096 | –14.3% |
| Investments including acquisitionsb | 224 | 152 | 47.3% | 644 | 495 | 30.1% |
| Research and development expenses | 42 | 52 | –18.6% | 136 | 146 | –6.6% |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments) b Additions to property, plant and equipment and intangible assets
The segment's income from operations (EBIT) before special items declined considerably compared with the third quarter of 2022. In the Monomers division, EBIT before special items decreased considerably. Lower raw materials prices and reduced fixed costs were unable to offset the negative price development, particularly for ammonia. EBIT before special items declined slightly in the Performance Materials division, mainly driven by lower prices and volumes. Here, too, considerably reduced fixed costs had an offsetting effect.
EBIT for the third quarter of 2023 included special charges, mainly for adaptations to the production structures at the Verbund site in Ludwigshafen, Germany, and for measures in the context of the cost savings program focusing on Europe.
In the third quarter of 2023, sales in the Industrial Solutions segment were considerably lower in both operating divisions than in the prior-year quarter.
| Industrial Solutions |
Dispersions & Resins |
Performance Chemicals |
|
|---|---|---|---|
| Volumes | –11.3% | –9.8% | –13.4% |
| Prices | –9.7% | –10.9% | –8.0% |
| Currencies | –4.1% | –4.3% | –3.9% |
| Portfolio | –2.4% | –0.3% | –5.6% |
| Sales | –27.5% | –25.2% | –30.9% |
The decline in sales was mainly attributable to considerably lower volumes in nearly all business areas as a result of reduced demand.
Segment data – Industrial Solutions
| Million € | ||||||
|---|---|---|---|---|---|---|
| Q3 | January–September | |||||
| 2023 | 2022 | +/– | 2023 | 2022 | +/– | |
| Sales to third parties | 1,948 | 2,687 | –27.5% | 6,141 | 7,823 | –21.5% |
| of which Dispersions & Resins | 1,201 | 1,606 | –25.2% | 3,776 | 4,744 | –20.4% |
| Performance Chemicals | 747 | 1,080 | –30.9% | 2,365 | 3,079 | –23.2% |
| Income from operations before depreciation, amortization and special items | 207 | 389 | –46.7% | 715 | 1,229 | –41.9% |
| Income from operations before depreciation and amortization (EBITDA) | 196 | 398 | –50.7% | 766 | 1,220 | –37.2% |
| Depreciation and amortizationa | 84 | 89 | –6.1% | 261 | 258 | 1.2% |
| Income from operations (EBIT) | 113 | 309 | –63.5% | 505 | 962 | –47.5% |
| Special items | –10 | 10 | 42 | –9 | ||
| EBIT before special items | 122 | 299 | –59.1% | 463 | 971 | –52.3% |
| Assets (September 30) | 5,798 | 7,063 | –17.9% | 5,798 | 7,063 | –17.9% |
| Investments including acquisitionsb | 65 | 74 | –11.3% | 187 | 192 | –2.7% |
| Research and development expenses | 34 | 42 | –19.3% | 115 | 129 | –11.1% |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments) b Additions to property, plant and equipment and intangible assets
Considerably declined price levels due to lower raw materials prices additionally burdened the sales performance in both operating divisions.
In addition, negative currency effects, mainly relating to the U.S. dollar and the Chinese renminbi, slightly weighed down sales.
Portfolio effects dampened sales performance slightly. This development was mainly attributable to the divestiture of the kaolin minerals business in the Performance Chemicals division effective September 30, 2022.
Compared with the prior-year quarter, income from operations (EBIT) before special items of both of the segment's divisions declined considerably. Earnings in the Performance Chemicals division decreased in particular due to lower volumes and margins, negative currency effects and the missing earnings contributions from the divested kaolin minerals business. In the Dispersions & Resins division, the decline in earnings was mainly a result of volume-related lower margins. Reduced fixed costs, primarily due to lower personnel costs attributable in part to the measures taken in the context of the cost savings program focusing on Europe, had a positive effect in both operating divisions.
In the Surface Technologies segment, sales were down considerably compared with the third quarter of 2022. Sales in the Catalysts division decreased significantly, while the Coatings division recorded a slight decline in sales.
| Surface Technologies |
Catalysts | Coatings | |
|---|---|---|---|
| Volumes | –11.0% | –14.5% | 2.2% |
| Prices | –11.1% | –15.7% | 6.1% |
| Currencies | –4.9% | –3.7% | –9.3% |
| Portfolio | –0.1% | –0.1% | –0.2% |
| Sales | –27.1% | –34.0% | –1.2% |
| Million € | |||||||
|---|---|---|---|---|---|---|---|
| Q3 | January–September | ||||||
| 2023 | 2022 | +/– | 2023 | 2022 | +/– | ||
| Sales to third parties | 3,887 | 5,333 | –27.1% | 12,691 | 16,236 | –21.8% | |
| of which Catalysts | 2,781 | 4,213 | –34.0% | 9,419 | 13,149 | –28.4% | |
| Coatings | 1,106 | 1,120 | –1.2% | 3,272 | 3,087 | 6.0% | |
| Income from operations before depreciation, amortization and special items | 404 | 380 | 6.5% | 1,180 | 1,145 | 3.0% | |
| Income from operations before depreciation and amortization (EBITDA) | 341 | 337 | 1.3% | 1,045 | 1,032 | 1.3% | |
| Depreciation and amortizationa | 148 | 141 | 5.1% | 431 | 494 | –12.8% | |
| Income from operations (EBIT) | 194 | 197 | –1.4% | 614 | 538 | 14.2% | |
| Special items | –63 | –43 | –47.8% | –137 | –195 | 29.8% | |
| EBIT before special items | 257 | 239 | 7.4% | 750 | 733 | 2.4% | |
| Assets (September 30) | 13,479 | 16,132 | –16.4% | 13,479 | 16,132 | –16.4% | |
| Investments including acquisitionsb | 131 | 191 | –31.5% | 363 | 436 | –16.6% | |
| Research and development expenses | 67 | 74 | –10.0% | 226 | 255 | –11.5% | |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
The decline in the segment's sales was mainly due to lower prices and volumes in precious metal trading, mobile emissions catalysts and in battery materials in the Catalysts division. At €1,717 million, sales in precious metal trading and precious metal sales in the mobile emissions catalysts business1 were below the prior-year quarter (€3,006 million). Considerable price increases and slight volume growth in the Coatings division only partially compensated for this. The Coatings division raised prices in all business areas, while sales volumes increased particularly in the surface treatment and automotive OEM coatings businesses.
Negative currency effects, largely relating to the Chinese renminbi and the U.S. dollar, dampened the segment's sales performance and were also the main drivers for the overall slight sales decline of the Coatings division.
Portfolio effects, particularly in the Catalysts division as a result of the divestiture of the production site in De Meern, Netherlands, which became effective on August 31, 2023, had a slightly negative impact on sales.
The segment slightly increased income from operations (EBIT) before special items compared with the prior-year quarter. The increase was due to the considerable earnings growth in the Coatings division, which resulted mainly from price and volumerelated margin increases. This more than compensated for a considerably lower EBIT before special items in the Catalysts division. Earnings in the Catalysts division decreased mainly as a result of lower contributions from the battery materials business and precious metal trading. Significant increases in contributions from
the chemical and refining catalysts businesses could only partially compensate for this.
In the third quarter of 2023, EBIT included special charges totaling €63 million. The Catalysts division recorded special charges mainly due to the integration of the BASF Shanshan companies and the carve-out of the BASF Environmental Catalyst and Metal Solutions unit. In the Coatings division, special charges arose in particular from measures to increase efficiency.
Both divisions of the Nutrition & Care segment recorded considerable declines in sales compared with the third quarter of 2022.
| Nutrition & Care | Care Chemicals Nutrition & Health | ||
|---|---|---|---|
| Volumes | –6.3% | –9.0% | 0.5% |
| Prices | –10.7% | –11.6% | –8.3% |
| Currencies | –3.6% | –3.1% | –4.7% |
| Portfolio | – | – | – |
| Sales | –20.5% | –23.7% | –12.5% |
The segment's decreased sales performance was mainly driven by reduced prices due to high product availability on the market and lower raw materials prices. In the Care Chemicals division, prices decreased particularly in the oleo surfactants and alcohols business, as well as in the home care, industrial and institutional cleaning and industrial formulators business. In the Nutrition & Health division, prices declined mainly for vitamins. In addition, prices were lower for aroma ingredients.
Lower demand resulted in lower sales volumes in all business areas of the Care Chemicals division, particularly in the home care, industrial and institutional cleaning and industrial formulators business. Volumes in the Nutrition & Health division matched the level of the prior-year quarter.
Slightly negative currency effects, largely relating to the U.S. dollar, the Chinese renminbi and the Indian rupee, additionally dampened sales performance.
| Million € | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q3 | January–September | |||||||
| 2023 | 2022 | +/– | 2023 | 2022 | +/– | |||
| Sales to third parties | 1,688 | 2,123 | –20.5% | 5,226 | 6,167 | –15.3% | ||
| of which Care Chemicals | 1,158 | 1,517 | –23.7% | 3,633 | 4,341 | –16.3% | ||
| Nutrition & Health | 530 | 605 | –12.5% | 1,593 | 1,827 | –12.8% | ||
| Income from operations before depreciation, amortization and special items | 104 | 291 | –64.3% | 435 | 967 | –55.0% | ||
| Income from operations before depreciation and amortization (EBITDA) | 95 | 287 | –67.0% | 453 | 963 | –52.9% | ||
| Depreciation and amortizationa | 119 | 110 | 8.4% | 336 | 330 | 1.8% | ||
| Income from operations (EBIT) | –24 | 178 | 117 | 633 | –81.5% | |||
| Special items | –9 | –3 | –258.1% | 18 | –4 | |||
| EBIT before special items | –15 | 180 | 99 | 637 | –84.4% | |||
| Assets (September 30) | 7,702 | 8,460 | –8.9% | 7,702 | 8,460 | –8.9% | ||
| Investments including acquisitionsb | 173 | 161 | 7.3% | 496 | 404 | 22.9% | ||
| Research and development expenses | 34 | 39 | –13.0% | 113 | 124 | –9.0% | ||
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments) b Additions to property, plant and equipment and intangible assets
Compared with the prior-year quarter, the segment's income from operations (EBIT) before special items declined considerably. The Nutrition & Health division recorded an overall negative EBIT before special items, mainly as a result of lower margins due to declined prices, particularly in the vitamins business area. Positive earnings of the Care Chemicals division, which were also considerably below the figure of the prior-year quarter due to price-related lower margins, had an offsetting effect.
In the Agricultural Solutions segment, sales were considerably below the prior-year quarter. This was mainly attributable to a decline in volumes. The market environment in the third quarter of 2023 continued to be dominated by cautious purchasing behavior, particularly due to channel destocking at distributors as well as lower agricultural commodity prices. In addition, sales performance was burdened by currency effects. Higher prices in all regions and almost all indications had a positive effect.
| Sales | –18.6% |
|---|---|
| Portfolio | – |
| Currencies | –4.8% |
| Prices | 4.9% |
| Volumes | –18.7% |
The slight sales decline in Europe was driven by negative currency effects and lower volumes, especially of herbicides and fungicides. Considerably higher prices had a positive effect.
In North America, sales declined considerably as a result of lower volumes, particularly of herbicides. Negative currency effects, largely relating to the U.S. dollar, exacerbated this development, while higher prices had a positive impact.
Sales in Asia declined considerably, due to both negative currency effects, largely relating to the Indian rupee and the Chinese renminbi, and lower volumes, mainly of fungicides and herbicides. Prices increased considerably.
Million €
| Q3 | January–September | ||||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | +/– | 2023 | 2022 | +/– | ||
| Sales to third parties | 1,744 | 2,142 | –18.6% | 7,865 | 7,998 | –1.7% | |
| Income from operations before depreciation, amortization and special items | 225 | 188 | 19.9% | 2,049 | 1,625 | 26.1% | |
| Income from operations before depreciation and amortization (EBITDA) | 213 | 164 | 29.9% | 2,034 | 1,592 | 27.8% | |
| Depreciation and amortizationa | 172 | 165 | 4.3% | 524 | 520 | 0.6% | |
| Income from operations (EBIT) | 41 | –1 | 1,511 | 1,072 | 40.9% | ||
| Special items | –12 | –8 | –51.8% | –15 | –26 | 41.5% | |
| EBIT before special items | 53 | 7 | 651.5% | 1,526 | 1,098 | 39.0% | |
| Assets (September 30) | 17,427 | 17,860 | –2.4% | 17,427 | 17,860 | –2.4% | |
| Investments including acquisitionsb | 72 | 113 | –35.7% | 234 | 245 | –4.4% | |
| Research and development expenses | 208 | 225 | –7.4% | 655 | 698 | –6.1% |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets
In the region South America, Africa, Middle East, sales declined considerably. This was mainly driven by a delayed start to the season and consequently lower volumes, particularly in Brazil, as well as negative currency effects, especially relating to the Argentine peso. Higher prices were unable to fully offset this.
Income from operations (EBIT) before special items was considerably above the prior-year quarter, mainly due to price increases and a one-time effect from an insurance payment.
EBIT for the third quarter of 2023 included special charges, mainly for measures in the context of the cost savings program focusing on Europe.
Sales in Other decreased considerably compared with the third quarter of 2022. This was mainly due to a decline in sales in com-
Income from operations (EBIT) before special items decreased considerably. This development was mainly due to lower income from hedging transactions compared with the prior-year quarter.
modity trading.
Million €
| Q3 | January–September | |||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | +/– | 2023 | 2022 | +/– | |
| Sales | 689 | 1,153 | –40.2% | 2,365 | 3,235 | –26.9% |
| Income from operations before depreciation, amortization and special items | –8 | 62 | –367 | –548 | 33.1% | |
| Income from operations before depreciation and amortization (EBITDA) | –45 | 58 | –479 | –361 | –32.8% | |
| Depreciation and amortizationa | 38 | 40 | –5.2% | 113 | 116 | –2.4% |
| Income from operations (EBIT) | –83 | 17 | –592 | –477 | –24.3% | |
| Special items | –37 | –5 | –705.2% | –113 | 187 | |
| EBIT before special items | –46 | 22 | –480 | –664 | 27.8% | |
| of which Costs for cross-divisional corporate research | –59 | –73 | 19.2% | –179 | –220 | 18.5% |
| Costs of corporate headquarters | –54 | –65 | 17.3% | –173 | –198 | 12.4% |
| Other businesses | 0 | 7 | –96.0% | 14 | –21 | |
| Foreign currency results, hedging and other measurement effects | 3 | 38 | –92.1% | –13 | 125 | |
| Miscellaneous income and expenses | 64 | 115 | –44.8% | –127 | –350 | 63.6% |
| Assets (September 30)b | 16,726 | 23,928 | –30.1% | 16,726 | 23,928 | –30.1% |
| Investments including acquisitionsc | 35 | 52 | –33.5% | 106 | 141 | –24.8% |
| Research and development expenses | 76 | 91 | –16.2% | 225 | 258 | –12.7% |
a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Contains assets of businesses recognized under Other as well as reconciliation to assets of the BASF Group
c Additions to property, plant and equipment and intangible assets
Sales at companies located in Europe declined by 32.2% to €5,941 million compared with the prior-year quarter. This development was mainly attributable to considerably lower prices and volumes in almost all segments. Prices fell in the Materials, Chemicals and Surface Technologies segments in particular. The Agricultural Solutions segment increased its prices. The decline in sales volumes was most pronounced in the Chemicals and Materials segments. Negative currency effects in all segments and portfolio effects, especially in the Industrial Solutions segment, had a slightly negative impact on sales.
In North America, sales decreased by 32.6% to €3,939 million; in local currency terms, sales were 28.4% below the figure of the third quarter of 2022. The negative sales performance was mainly driven by lower prices in almost all segments. Lower sales volumes, particularly in the Surface Technologies and Agricultural Solutions segments, contributed to the decline in sales. Currency effects had a negative impact on sales in all segments. In addition, sales were reduced by negative portfolio effects, especially in the Industrial Solutions segment following the sale of the kaolin minerals business.
Compared with the prior-year period, sales at companies located in Asia Pacific declined to €4,250 million; this corresponds to a decrease of 21.4%. In local currency terms, sales decreased by 12.2%. At €2,415 million, sales in Greater China were 19.1% below the level of the prior-year quarter. The decline in sales in the Asia Pacific region was mainly attributable to considerably lower prices in the Surface Technologies, Chemicals and Materials segments. In addition, sales performance was weighed down by negative currency effects in all segments. Portfolio effects in the Industrial Solutions segment had a slightly negative impact on sales. A considerable increase in sales volumes in the Chemicals and Materials segments and higher volumes in the Nutrition & Care segment led to
| Million € | |
|---|---|
| ----------- | -- |
| Sales by location of company |
Sales by location of customer |
|||||
|---|---|---|---|---|---|---|
| Q3 | 2023 | 2022 | +/– | 2023 | 2022 | +/– |
| Europe | 5,941 | 8,759 | –32.2% | 5,740 | 8,306 | –30.9% |
| of which Germany | 2,547 | 3,904 | –34.8% | 1,564 | 2,467 | –36.6% |
| North America | 3,939 | 5,841 | –32.6% | 3,752 | 5,684 | –34.0% |
| Asia Pacific | 4,250 | 5,405 | –21.4% | 4,290 | 5,517 | –22.2% |
| of which Greater China | 2,415 | 2,985 | –19.1% | 2,397 | 2,910 | –17.6% |
| South America, Africa, Middle East | 1,604 | 1,942 | –17.4% | 1,953 | 2,440 | –20.0% |
| BASF Group | 15,735 | 21,946 | –28.3% | 15,735 | 21,946 | –28.3% |
| January–September | ||||||
| Europe | 21,532 | 28,359 | –24.1% | 20,507 | 26,932 | –23.9% |
| of which Germany | 8,810 | 11,925 | –26.1% | 5,305 | 6,807 | –22.1% |
| North America | 14,777 | 19,042 | –22.4% | 14,563 | 18,679 | –22.0% |
| Asia Pacific | 13,056 | 16,399 | –20.4% | 13,231 | 16,761 | –21.1% |
| of which Greater China | 7,128 | 9,156 | –22.1% | 7,059 | 8,956 | –21.2% |
| South America, Africa, Middle East | 3,666 | 4,203 | –12.8% | 4,730 | 5,631 | –16.0% |
| BASF Group | 53,031 | 68,003 | –22.0% | 53,031 | 68,003 | –22.0% |
slight volume growth in the region overall compared with the weak prior-year quarter.
The region South America, Africa, Middle East recorded a decline in sales of 17.4% to €1,604 million. In local currency terms, sales decreased by 13.2%. This was primarily the result of a considerable decline in volumes. Sales were also negatively impacted by currency effects. Slightly higher price levels overall due to the price increases in the Surface Technologies and Agricultural Solutions segments had a positive influence on sales performance, however.
Statement of income
| Million € | Q3 | January–September | |||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | +/– | 2023 | 2022 | +/– | ||
| Sales revenue | 15,735 | 21,946 | –28.3% | 53,031 | 68,003 | –22.0% | |
| Cost of sales | –12,127 | –17,062 | 28.9% | –40,033 | –51,278 | 21.9% | |
| Gross profit on sales | 3,608 | 4,884 | –26.1% | 12,998 | 16,726 | –22.3% | |
| Selling expenses | –2,135 | –2,500 | 14.6% | –6,560 | –7,189 | 8.8% | |
| General administrative expenses | –371 | –379 | 2.1% | –1,119 | –1,137 | 1.6% | |
| Research and development expenses | –481 | –545 | 11.7% | –1,534 | –1,681 | 8.7% | |
| Other operating income | 497 | 425 | 16.9% | 1,431 | 1,337 | 7.0% | |
| Other operating expenses | –769 | –667 | –15.3% | –2,130 | –1,936 | –10.0% | |
| Income from integral companies accounted for using the equity method | 46 | 76 | –40.1% | 148 | 309 | –52.0% | |
| Income from operations (EBIT) | 394 | 1,294 | –69.6% | 3,235 | 6,429 | –49.7% | |
| Income from non-integral companies accounted for using the equity method | –251 | 118 | 24 | –224 | |||
| Income from other shareholdings | 25 | 5 | 369.1% | 46 | 22 | 111.5% | |
| Expenses from other shareholdings | –19 | –21 | 11.9% | –40 | –60 | 33.4% | |
| Net income from shareholdings | –245 | 102 | 30 | –262 | |||
| Interest income | 72 | 49 | 47.6% | 198 | 137 | 44.3% | |
| Interest expenses | –239 | –169 | –41.1% | –644 | –435 | –47.9% | |
| Interest result | –166 | –120 | –38.4% | –445 | –298 | –49.5% | |
| Other financial income | 36 | 23 | 56.1% | 93 | 56 | 66.4% | |
| Other financial expenses | –57 | –60 | 5.2% | –169 | –150 | –12.8% | |
| Other financial result | –21 | –37 | 43.5% | –76 | –94 | 19.3% | |
| Financial result | –187 | –157 | –19.2% | –521 | –392 | –33.0% | |
| Income before income taxes | –38 | 1,239 | 2,743 | 5,775 | –52.5% | ||
| Income taxes | –171 | –287 | 40.4% | –793 | –1,323 | 40.0% | |
| Income after taxes | –209 | 952 | 1,950 | 4,452 | –56.2% | ||
| of which attributable to shareholders of BASF SE (net income) | –249 | 909 | 1,812 | 4,220 | –57.1% | ||
| attributable to noncontrolling interests | 40 | 42 | –6.4% | 138 | 232 | –40.5% | |
| Basic earnings per share € |
–0.28 | 1.01 | 2.03 | 4.67 | –56.5% | ||
| Diluted earnings per share € |
–0.28 | 1.01 | 2.03 | 4.67 | –56.5% |
Assets
Million €
| Intangible assets 12,886 13,273 –2.9% 14,046 Property, plant and equipment 23,881 22,967 4.0% 22,969 Integral investments accounted for using the equity method 2,110 2,356 –10.4% 2,947 Non-integral investments accounted for using the equity method 4,900 4,645 5.5% 10,375 Other financial assets 1,177 1,120 5.1% 593 Deferred tax assets 796 880 –9.6% 770 Other receivables and miscellaneous assets 2,414 1,810 33.4% 2,895 Noncurrent assets 48,163 47,050 2.4% 54,595 Inventories 15,076 16,028 –5.9% 17,140 Accounts receivable, trade 11,819 12,055 –2.0% 14,543 Other receivables and miscellaneous assets 5,029 6,591 –23.7% 7,367 Marketable securities 226 232 –2.8% 202 Cash and cash equivalents 2,291 2,516 –8.9% 3,183 Current assets 34,440 37,422 –8.0% 42,435 Total assets 82,603 84,472 –2.2% 97,030 |
September 30, 2023 | December 31, 2022 | +/– | September 30, 2022 | +/– |
|---|---|---|---|---|---|
| –8.3% | |||||
| 4.0% | |||||
| –28.4% | |||||
| –52.8% | |||||
| 98.5% | |||||
| 3.3% | |||||
| –16.6% | |||||
| –11.8% | |||||
| –12.0% | |||||
| –18.7% | |||||
| –31.7% | |||||
| 11.5% | |||||
| –28.0% | |||||
| –18.8% | |||||
| –14.9% |
Million €
| September 30, 2023 | December 31, 2022 | +/– | September 30, 2022 | +/– | |
|---|---|---|---|---|---|
| Subscribed capital | 1,142 | 1,144 | –0.1% | 1,176 | –2.8% |
| Capital reserves | 3,149 | 3,147 | 0.1% | 3,106 | 1.4% |
| Retained earnings | 34,164 | 35,453 | –3.6% | 40,205 | –15.0% |
| Other comprehensive income | 410 | –171 | 3,121 | –86.9% | |
| Equity attributable to shareholders of BASF SE | 38,865 | 39,573 | –1.8% | 47,607 | –18.4% |
| Non-controlling interests | 1,405 | 1,350 | 4.1% | 1,493 | –5.9% |
| Equity | 40,270 | 40,923 | –1.6% | 49,100 | –18.0% |
| Provisions for pensions and similar obligations | 2,415 | 2,810 | –14.1% | 2,134 | 13.2% |
| Deferred tax liabilities | 1,384 | 1,543 | –10.3% | 1,418 | –2.4% |
| Tax provisions | 325 | 330 | –1.5% | 471 | –31.0% |
| Other provisions | 1,612 | 1,650 | –2.3% | 1,844 | –12.6% |
| Financial indebtedness | 17,680 | 15,171 | 16.5% | 15,707 | 12.6% |
| Other liabilities | 1,619 | 1,606 | 0.8% | 1,642 | –1.4% |
| Noncurrent liabilities | 25,035 | 23,110 | 8.3% | 23,216 | 7.8% |
| Accounts payable, trade | 5,900 | 8,434 | –30.0% | 8,595 | –31.4% |
| Provisions | 3,994 | 3,799 | 5.1% | 4,942 | –19.2% |
| Tax liabilities | 1,005 | 995 | 1.0% | 1,441 | –30.3% |
| Financial indebtedness | 3,709 | 3,844 | –3.5% | 6,621 | –44.0% |
| Other liabilities | 2,689 | 3,368 | –20.1% | 3,115 | –13.7% |
| Current liabilities | 17,298 | 20,440 | –15.4% | 24,714 | –30.0% |
| Total equity and liabilities | 82,603 | 84,472 | –2.2% | 97,030 | –14.9% |
Statement of cash flows
Million €
| Q3 | January–September | |||
|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |
| Net income | –249 | 909 | 1,812 | 4,220 |
| Depreciation and amortization of property, plant and equipment and intangible assets | 969 | 960 | 2,846 | 2,930 |
| Changes in net working capitala | 1,899 | 670 | –420 | –4,172 |
| Miscellaneous items | 67 | –238 | –391 | 261 |
| Cash flows from operating activities | 2,686 | 2,301 | 3,848 | 3,239 |
| Payments made for property, plant and equipment and intangible assets | –1,221 | –1,006 | –3,361 | –2,501 |
| Acquisitions/divestitures | –8 | 222 | 14 | 601 |
| Changes in financial assets and miscellaneous items | 4 | 104 | 144 | 2 |
| Cash flows from investing activities | –1,225 | –680 | –3,202 | –1,899 |
| Capital increases/repayments and other equity transactions | − | –233 | –70 | –1,308 |
| Changes in financial and similar liabilities | –1,667 | –1,938 | 2,356 | 3,627 |
| Dividends | 0 | –16 | –3,079 | –3,208 |
| Cash flows from financing activities | –1,667 | –2,188 | –793 | –889 |
| Cash-effective changes in cash and cash equivalents | –206 | –567 | –147 | 452 |
| Changes in cash and cash equivalents from foreign exchange rates and changes in the scope of consolidation | 23 | –31 | –77 | 107 |
| Cash and cash equivalents at the start of the period | 2,474 | 3,780 | 2,516 | 2,624 |
| Cash and cash equivalents at the end of the period | 2,291 | 3,183 | 2,291 | 3,183 |
a In order to optimize precious metal stocks, the Group sells precious metals and concurrently enters into agreements to repurchase them at a set price. The cash flows resulting from the sale and repurchase are reported in cash flows from operating activities. Liabilities to repurchase precious metals amounted to €123 million as of September 30, 2023.
The IFRS figures correspond to the amounts presented in the Consolidated Financial Statements. The adjusted figures exclude sales in precious metal trading and precious metal sales in the automotive catalysts business.
| Million € | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | January–September | |||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||
| IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | |||
| Sales | 15,735 | 14,018 | 21,946 | 18,940 | 53,031 | 46,806 | 68,003 | 58,315 | ||
| Volume growth | −9.4% | −7.8% | −7.2% | −5.1% | −10.7% | −10.1% | −4.2% | −0.4% | ||
| EBITDA before special items | 1,545 | 1,545 | 2,325 | 2,325 | 6,354 | 6,354 | 9,361 | 9,361 | ||
| EBITDA margin before special items | 9.8% | 11.0% | 10.6% | 12.3% | 12.0% | 13.6% | 13.8% | 16.1% |
Million €
BASF Group
| Q3 | January–September | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | ||||||
| IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | IFRS figure | Adjusted figure | ||
| Sales | 3,887 | 2,170 | 5,333 | 2,327 | 12,691 | 6,465 | 16,236 | 6,547 | |
| Volume growth | −11.0% | −0.5% | −8.7% | 8.1% | −9.7% | −2.7% | −12.5% | 2.1% | |
| EBITDA before special items | 404 | 404 | 380 | 380 | 1,180 | 1,180 | 1,145 | 1,145 | |
| EBITDA margin before special items | 10.4% | 18.6% | 7.1% | 16.3% | 9.3% | 18.3% | 7.1% | 17.5% |
BASF Report 2023
Quarterly Statement Q1 2024 / Annual Shareholders' Meeting 2024
April 25, 2024
Half-Year Financial Report 2024
July 26, 2024
Quarterly Statement Q3 2024
October 30, 2024
BASF Report 2024
Published on October 31, 2023 You can find this and other BASF publications online at basf.com/publications
General inquiries Phone: +49 621 60-0, email: [email protected]
Media Relations Jens Fey, phone: +49 621 60-99123
Investor Relations Dr. Stefanie Wettberg, phone: +49 621 60-48002
Internet basf.com
This quarterly statement 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. Such risk factors include those discussed in Opportunities and Risks on pages 157 to 167 of the BASF Report 2022. The BASF Report is available online at basf.com/report. We do not assume any obligation to update the forward-looking statements contained in this quarterly statement above and beyond the legal requirements.
BASF supports the chemical industry's global Responsible Care initiative. COMS 2306 E
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