BASF Group releases preliminary figures for full year 2023

Expected BASF Group sales for the full year 2023 of €68,902 million are below the range of €73 billion to €76 billion forecasted by BASF and below average analyst estimates for 2023 (Vara: €70,579 million). Sales in 2022 amounted to €87,327 million.

Expected income from operations (EBIT) before special items of €3,806 million in 2023 is below the range of €4.0 billion to €4.4 billion forecasted by BASF and below the level of average analyst estimates for 2023 (Vara: €3,934 million). EBIT before special items in 2022 amounted to €6,878 million. The decrease compared with the prior year is due to sales-related lower margins, which could not be offset by the achieved fixed cost reduction.

The average analyst estimates for EBIT before special items of the segments are slightly exceeded in 2023 by Industrial Solutions, Materials and Agricultural Solutions. In the Chemicals segment, EBIT before special items in 2023 falls considerably short of average analyst estimates, among other things due to unplanned plant shutdowns. In the Surface Technologies and Nutrition & Care segments, EBIT before special items in 2023 remains slightly below the respective  analyst consensus. In Other, EBIT before special items in 2023 is slightly weaker than expected by analysts on average.

The BASF Group’s expected EBIT in 2023 amounts to €2,240 million; this is below analyst consensus for 2023 (Vara: €3,691 million) and below the figure for the prior year (2022: €6,548 million). This is primarily attributable to non-cash-effective impairments in the amount of €1.1 billion. These mainly relate to the Surface Technologies, Agricultural Solutions and Materials segments.

Net income of BASF Group is expected to amount to €225 million in 2023. This is an improvement of €852 million compared with the prior-year figure (2022: minus €627 million), which included non-cash-effective impairments on Russiarelated assets of Wintershall Dea in the amount of €6.5 billion. Analyst consensus for net income in 2023 (Vara: €2,247 million) is, however, not achieved.

Cash flows from operating activities are expected to reach €8.1 billion in 2023 and are thus above the prior-year figure of €7,709 million. Free cash flow is expected to amount to €2.7 billion (2022: €3,333 million).

Further information

The overview of analyst estimates, which is compiled monthly on behalf of BASF, can be found at: www.basf.com/….

On Friday, February 23, 2024, at 7:00 a.m. CET, the company will publish the BASF Report 2023 and will comment on the figures at the telephone conference for analysts and investors (from 9:30 a.m. to 10:30 a.m. CET) and the annual press conference for journalists (from 11:00 a.m. to 12:00 a.m. CET).

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. Forwardlooking 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.