Results of Operations

Sales rose by €2,647 million compared with the first quarter of 2020 to €19,400 million. This was mainly due to higher prices and volume growth. Prices rose significantly in the Surface Technologies, Chemicals and Materials segments. All segments increased sales volumes. Negative currency effects had an offsetting impact.

Factors influencing BASF Group sales in Q1 2021
Factors influencing BASF Group sales in Q1 2021 (bar chart)

Compared with the prior-year quarter, EBIT before special items1 rose by €681 million to €2,321 million. This was primarily attributable to considerably higher earnings contributions from the Materials and Chemicals segments. The Surface Technologies segment also recorded considerable growth in EBIT before special items. By contrast, EBIT before special items declined considerably in Other and in the Nutrition & Care segment, and decreased slightly in the Industrial Solutions segment. In the Agricultural Solutions segment, EBIT before special items was on a level with the prior-year quarter.

Special items in EBIT amounted to –€10 million in the first quarter of 2021, compared with –€184 million in the prior-year quarter.

EBIT2 rose by €855 million compared with the first quarter of 2020 to €2,311 million. Income from operations before depreciation, amortization and special items (EBITDA before special items)3 increased by €602 million to €3,181 million and EBITDA3 rose by €748 million to €3,176 million in the same period.

Q1 EBITDA before special items (Million €)

 

2021

2020

EBIT

2,311

1,456

– Special items

–10

–184

EBIT before special items

2,321

1,640

+ Depreciation and amortization before special items

859

934

+ Impairments and reversals of impairments on property, plant and equipment and intangible assets before special items

1

5

Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets before special items

860

939

EBITDA before special items

3,181

2,579

Q1 EBITDA (Million €)

 

2021

2020

EBIT

2,311

1,456

+ Depreciation and amortization

859

960

+ Impairments and reversals of impairments on property, plant and equipment and intangible assets

6

12

Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets

865

972

EBITDA

3,176

2,428

At €68 million, net income from shareholdings improved by €236 million compared with the prior-year quarter. This is primarily attributable to the positive earnings contribution of €51 million from Wintershall Dea GmbH, after –€165 million in the first quarter of 2020. The non-integral equity-accounted shareholding in Solenis also contributed to the increase in net income from shareholdings, with €28 million (Q1 2020: –€1 million).

The financial result declined by €44 million to –€132 million, mainly from a lower other financial result due to expenses in connection with bonds in foreign currency and the corresponding hedging instruments. In the prior-year period, income arose from this item. This was partially offset by an improved interest result due to lower interest expenses for financial indebtedness.

Income before income taxes rose to €2,247 million, compared with €1,200 million in the first quarter of 2020. The tax rate decreased from 26.6% to 19.4%, due among other factors to the higher earnings contribution from equity-accounted shareholdings.

Compared with the first quarter of 2020, income after taxes increased by €907 million to €1,810 million. Of this amount, €1,718 million was attributable to shareholders of BASF SE. Noncontrolling interests accounted for €92 million after €18 million in the prior-year quarter, primarily as a result of improved earnings contributions from BASF PETRONAS Chemicals Sdn. Bhd., Kuala Lumpur, Malaysia; Shanghai BASF Polyurethane Company Ltd., Shanghai, China; and BASF TOTAL Petrochemicals LLC, Port Arthur, Texas.

Earnings per share in the first quarter of the year were €1.87, compared with €0.97 in the prior-year quarter. Earnings per share adjusted4 for special items and amortization of intangible assets amounted to €2.00 (Q1 2020: €1.26).

Q1 adjusted earnings per share (Million €)

 

 

2021

2020

Income after taxes

 

1,810

903

– Special items

 

–10

–184

+ Amortization, impairments and reversals of impairments on intangible assets

 

157

171

– Amortization, impairments and reversals of impairments on intangible assets contained in special items

 

26

– Adjustments to income taxes

 

46

74

– Adjustments to income after taxes from discontinued operations

 

–19

Adjusted income after taxes

 

1,931

1,177

– Adjusted noncontrolling interests

 

92

17

Adjusted net income

 

1,839

1,160

Weighted average number of outstanding shares

in thousands

918,479

918,479

Adjusted earnings per share

2.00

1.26

1 For an explanation of this indicator, see Value-Based Management in the BASF Report 2020

2 The calculation of income from operations (EBIT) is shown in the Statement of Income in this quarterly statement.

3 For an explanation of this indicator, see Results of Operations in the BASF Report 2020

4 For an explanation of this indicator, see Results of Operations in the BASF Report 2020