BASF Agricultural Solutions Q3 2023 results: Lower sales due to volumes declines, higher EBIT before special items due to price increases

BASF today reported its financial results for the third quarter 2023.

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.

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.

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.