BASF achieves strong earnings growth in full year 2021

BASF Group significantly increased sales and earnings in the 2021 business year. “It was a strong and successful year for BASF,” said Chairman of the Board of Executive Directors, Dr. Martin Brudermüller, who presented the BASF Report 2021 together with Chief Financial Officer Dr. Hans-Ulrich Engel.

“We increased sales prices by 25 percent and volumes by 11 percent. All segments achieved price and volume growth in 2021,” said Brudermüller. BASF Group’s sales amounted to €78.6 billion in 2021, 33 percent higher than in the previous year.

EBITDA before special items of €11.3 billion in 2021 was higher by €3.9 billion and EBITDA of €11.4 billion exceeded the prior-year figure by €4.9 billion.

Agricultural Solutions Segment

In the Agricultural Solutions segment, BASF aims to further strengthen its market position as an integrated provider. The company’s offer comprises seeds and seed treatment products, as well as fungicides, herbicides, insecticides and biological solutions, complemented by digital products to help farmers achieve better yield. The company’s strategy is based on innovation-driven organic growth and targeted portfolio expansion through acquisitions. Customer needs, societal expectations and reducing environmental impacts are what motivate BASF to innovate.

At €8,162 million, sales to third parties in the Agricultural Solutions segment were €502 million above the prior-year level in 2021. The main drivers were higher volumes in all regions and higher prices. Negative currency effects had an offsetting impact.

In Europe, sales rose by €93 million year on year to €2,128 million. This was primarily attributable to higher volumes, especially in fungicides and herbicides. Slightly higher prices contributed to sales performance. Sales were reduced by negative currency effects, mainly in eastern Europe and Turkey.

Sales in North America rose by €81 million to €3,085 million. Higher sales volumes, especially for herbicides, more than compensated for negative currency effects and slightly lower prices.

In Asia, we increased sales by €114 million to €958 million. This was mainly due to higher sales volumes, especially in fungicides and insecticides, primarily in China. Slightly higher price levels contributed to the positive sales development, while negative currency effects had a dampening impact.

Sales in the region South America, Africa, Middle East amounted to €1,990 million, €213 million above the previous year, and were driven by significantly higher price levels and considerable volume growth in all sectors, especially in Brazil. This more than offset negative currency effects, especially in Argentina and Brazil.

At €715 million, income from operations (EBIT) before special items was €255 million below the 2020 figure. This was primarily attributable to significantly higher fixed costs, mainly from much higher bonus provisions, significantly higher raw materials prices and logistics costs, and a low-margin product mix. Earnings were also weighed down by negative currency effects.

EBIT amounted to €696 million, €114 million higher than in the previous year. This figure included special income from the sale of non-capitalized know-how. Special charges in connection with streamlining the global glufosinate-ammonium production network had an offsetting effect but were well below the special charges incurred in the previous year.

In Focus: Research and Development for the Right Balance in Agriculture

For BASF, sustainability begins in research and development. Farmers in particular face major challenges: feeding a growing world population, changing weather conditions due to climate change, and limited natural resources and arable land.

BASF’s research and development activities innovate for farmers’ success in strategically relevant crops in major markets around the world. They range from seed, biological and chemistry innovations to digital solutions that protect plants against fungal diseases, insect pests and weeds, and improve soil management and plant health. In 2021, BASF spent €904 million on research and development in the Agricultural Solutions segment, representing around 11% of the segment’s sales. By 2031, we will launch major pipeline projects across all business areas. BASF’s well-stocked innovation pipeline has a peak sales potential totaling more than €7.5 billion with products to be launched between 2021 and 2031. BASF’s solutions help farmers achieve better yield and promote healthy eating, balancing economic, environment and societal demands.

BASF’s research and development facilities are a global network of research sites, seed production and breeding stations. Proximity to our customers and the crops they grow enables us to seize future market opportunities and increase our competitiveness.

BASF’s biotechnology activities and our research and development capabilities comprise advanced breeding techniques, analytics, technology platforms and trait validation. To offer tailor-made, more sustainable crop solutions, BASF’s research platform on gene identification focuses on plant characteristics that enable higher yield and better quality, disease resistance and tolerance of environmental factors, such as drought. BASF applies state-of-the-art scientific methods such as genetic engineering and selective genome editing. These biotechnology activities are part of BASF’s Bioscience Research division.