AgroPages-BASF’s Agricultural Solutions segment sales up 20% in Q2 2019-Agricultural news

BASF’s Agricultural Solutions segment recorded considerable 20% sales growth to €1,796 million in the second quarter of 2019. This was primarily attributable to portfolio effects from the acquisition of significant businesses and assets from Bayer in August 2018. In addition, BASF achieved a slightly higher price level in the legacy business. Sales were also lifted by positive currency effects. Sales volumes were well below the prior-year quarter, mainly due to significantly lower volumes in North America.

Sales figures of BASF’s Agricultural Solutions segment (€ million)

	Q2 2019	Q2 2018	Change%	H1 2019	H1 2018	Change%
Sales	1,796	1,501	+20	4,445	3,229	+38
EBITDA before special items	121	278	-56.5	861	701	+22.8

In Europe, sales were considerably increased compared with the prior-year quarter. This was due to portfolio effects, which more than compensated for the significant decline in fungicide, seed treatment and herbicide volumes in northern and eastern Europe.

Sales in North America were considerably higher than in the second quarter of 2018, mainly as a result of portfolio effects. Positive currency effects and a slightly higher price level also contributed to the sales increase. This was partially offset by lower fungicide and herbicide volumes, especially in the United States and Canada due to distributor destocking and challenges relating to weather conditions and the trade conflicts.

Sales were considerably improved in Asia, mainly due to portfolio effects. Slightly positive currency effects also had a positive impact. Sales were reduced by lower fungicide volumes.

Sales in the region South America, Africa, Middle East rose considerably. The company significantly increased sales volumes, especially in Brazil for seed treatment and fungicides. A significantly higher price level and portfolio effects also contributed to the positive sales development. Negative currency effects had an offsetting impact.

Income from operations (EBIT) before special items was considerably weaker than in the prior-year quarter. Negative earnings from the acquired businesses due to their seasonality contributed to this development. Moreover, earnings in the legacy business were lower due to distributor destocking and challenges relating to weather conditions and the trade conflicts in North America. EBIT includes special charges, primarily for the integration of the acquired businesses.