BASF’s Agricultural Solutions sales up 53% in Q1 2019 on the acquisition of businesses and assets from Bayer

BASF’s Agricultural Solutions segment posted 53% sales growth in the first quarter of 2019 Y-O-Y. This was primarily attributable to portfolio effects from the acquisition of significant businesses and assets from Bayer in August 2018.  BASF also achieved a higher price level in the legacy business while sales volumes were considerably lower year on year, mainly due to weather-related factors.

The company recorded considerable sales growth in Europe compared with the prior-year quarter. This was primarily the result of portfolio effects.

In addition, the price level was slightly higher. Sales rose considerably in North America, mainly due to portfolio effects. Strongly positive currency effects and a slightly higher price level also contributed to the sales increase. This more than offset the significant decline in herbicide and fungicide volumes, especially in the United States, due to adverse weather conditions and an extended period of cold.

BASF considerably improved sales in Asia. This was largely attributable to portfolio effects. Sales were also positively impacted by slightly positive currency effects and a slightly higher price level.

Sales rose considerably in the region South America, Africa, Middle East, driven mainly by portfolio effects. A significantly higher price level and growth in fungicide and herbicide volumes, particularly in Brazil, also contributed to the sales increase. Sales were weighed down by strongly negative currency effects.

Income from operations (EBIT) before special items was considerably higher than in the first quarter of 2018. This was largely due to the contribution from the acquired businesses.

EBIT included special income from divestitures in accordance with the conditions imposed by antitrust authorities within the scope of the acquisition of the Bayer businesses. In the first quarter of 2019, these exceeded the special charges for the integration of the acquired businesses.