Cash flow from the company’s agricultural sector dropped 28.2% during the period.
BASF, one of the largest brands in the German chemical industry, announced on Wednesday (October 30) that it achieved sales of €15.7 billion in the third quarter of 2024. Of this total, €1.85 billion corresponds to the agricultural segment, marking a 6% increase.
However, earnings before interest, taxes, depreciation, and amortization (EBITDA) before special items fell by 78.4%, decreasing from €225 million in Q3 2023 to €49 million this year.
The company reiterated that, in the last three months, EBITDA, including special charges, totaled €239 million. This was primarily related to provisions recorded due to the announced closure of production and formulation plants for ammonium glufosinate in Knapsack and Frankfurt am Main, Germany.
As a result, cash flow from the agricultural sector stood at €612 million for the period, down 28.2% compared to results from July to September 2023 (€853 million).
“The cash flow for the segment was significantly below the level of the same period last year, primarily due to lower EBITDA and a smaller reduction in accounts receivable,” the company explained.
The reduction in inventory, compared to an increase in inventory during the same period last year, was not sufficient to fully offset this difference, BASF stated.
Sales in South America, Africa, and the Middle East declined due to negative currency effects, primarily from the Argentine peso and Brazilian real, as well as lower prices in input portfolios. Increased volumes across nearly all indicators were not enough to fully compensate for this drop.
In agricultural solutions, the decline in prices in Q3 was 6.2%. Even with sales volumes increasing by 24.9%, this did not offset lower prices and climatic conditions that affected producers’ purchasing appetite.
In September, the company began to outline a new strategy, differentiating its core businesses (Chemicals, Materials, Industrial Solutions, and Nutrition & Care) from autonomous businesses serving specific sectors—where the agricultural solutions segment is included.
