BASF agchem sales up 12% in 2013

Date:02-28-2014

Sales of BASF’s crop protection rose by 11.7% to €5,227 million in 2013 . The significant sales growth was chiefly due to increased volumes and prices in all regions and indications. The acquisition of Becker Underwood further increased sales. Volumes rose by 10%, prices by 3% and portfolio grew by 4%. However, the growth was partly offset by a 5% decrease from adverse currency effects. Earnings before interest, tax, depreciation and amortisation (EBITDA) was improved by 16.3% to €1,375 million. Income from operations (EBIT) boosted by 17.7% to €1,208 million. Fungicides were the main business category, accounting for 43% of total sales, followed by herbicides(34%)and insecticides(17%) and functional crop care (6%).

BASF’s agricultural solutions results (€ million)
Q4 ended Dec 31	Q4 2013	Q4 2012	% change	Full Year 2013	Full Year 2012	% change
Sales	890	877	+1.5	5,227	4,679	+11.7
EBITDA1	108	70	+54.3	1,375	1,182	+16.3
EBIT2before special items	67	33	+103.0	1,222	1,037	+17.8
EBIT2	63	24	+162.5	1,208	1,026	+17.7
1 earnings before interest, tax, depreciation and amortisation 2 earnings before interest, tax

For the fourth quarter of 2013, BASF’s crop protection sales rose 1.5% to €890 million year-on-year. EBITDA and EBIT were both up by 54.3% and 162.5%, to €108 million and €63 million, respectively.

Regional sales

Crop protection sales in Europe increased by 6.9% or €126 million to €1,946 million in 2013. The growth mainly came from higher volumes and sales prices for fungicides, especially Xemium®, and for herbicides. BASF pointed out that sales increased in Germany and France.

Sales in North America rose by 35.1% or €389 million to €1,497 million in 2013. Growth was particularly driven by greater demand and higher prices for fungicides and herbicides. The acquisition of Becker Underwood also contributed significantly to this sharp increase in sales. Negative currency effects dampened sales.

In South America, crop protection sales improved by 3.7% or €45 million to €1,271 million despite highly negative currency effects. Sales growth was due to higher insecticide sales volumes. Meanwhile, BASF successfully launched Kixor® herbicide and Xemium® fungicide on the Brazilian market.

Crop protection sales in Asia declined by 2.3% or €12 million to €513 million in 2013,which was impacted by negative currency effects, while increased demand for fungicides in growing markets such as China, Indonesia and India were not able to fully offset this.

Outlook

In 2014, BASF will continue their strategy of profitable growth with innovative products and solutions. The company expects continuing high exchange rate volatility in their most important growth markets. Prices for agricultural products are expected to be lower than in 2013, while nevertheless remaining above the averages of the last five years. BASF anticipates significant sales growth and a slight increase in income from operations before special items.