Earnings up on declining sales at BASF in 2024

Ludwigshafen, Germany – BASF has reported a 5.3% drop in sales in 2024, falling from €68.9bn in 2023 to €65.3bn last year. However, EBITDA before special items rose by 2.4%, from 2023’s €7.67bn to €7.86bn in 2024.

The company’s core businesses had particularly strong performance, with EBITDA before special items up 18%, largely a result of higher volumes. This was partly offset by earnings declines in its standalone businesses. The overall drop in sales, it said, was largely a result of competition-driven price decreases in all segments.

CFO Dirk Elvermann said the company is on track to hit its target of €2.1bn in annual cost savings by the end of 2026. “By the end of 2024, we already achieved a total annual cost reduction run rate of around €1bn, of which around €100m is related to the Ludwigshafen cost improvement programme announced in February 2024,” he said.

The company is predicting its EBITDA before special items will be higher than the 2024 figure, falling in the range €8.0bn and €8.4bn. All business segments other than chemicals are likely to contribute to the increase in earning.

Looking at 2025’s CO₂ emissions, these are expected to be between 16.7MT and 17.7MT, compared to 2024’s 17.0MT. The potential increase reflects higher forecast production volumes in the light of rising demand. The company said it will look to counteract this increase with targeted measures to reduce emissions, such as increasing energy efficiency and optimising processes, as well as continuing the shift to electricity from renewable energies.

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