Results of Operations of BASF SE

BASF SE’s sales revenue declined by €1,041 million to €21,791 million in the fiscal year. Despite higher sales volumes, sales decreased in the operating business due to lower sales prices. The economic environment continues to pose exceptional challenges for the chemical industry. Against this backdrop, low plant capacity utilization and impairments on property, plant and equipment recorded in production costs totaling €65 million had a negative impact on BASF SE’s profit. Effects from lower raw materials and energy prices as well as from inventory valuation led to a positive earnings contribution in the fiscal year. Gross profit on sales increased by €188 million overall to €2,950 million.

In line with our forecast, income from operations increased by €1,061 million to -€1,003 million, marking a considerable improvement. In the fiscal year, income from operations also benefited by changes to the actuarial assumptions made about pension obligations. In the fiscal year, selling expenses increased by €79 million and administrative expenses by €32 million. Research expenses decreased by €17 million. The lower expenditure for exploratory research was offset by impairments of €46 million.

The balance of other operating income and expenses improved by €967 million compared with the previous year to -€317 million. Out-of-period income increased by €443 million, mainly due to higher reversals of provisions, gains from asset disposals, refunds and grants. Furthermore, €160 million lower expenses from agreed cost transfers from Group companies were recognized. Foreign currency result improved by €6 million. In addition, expenditures for portfolio measures related to the implementation of strategic measures decreased by €58 million while impairments increased by €8 million. Expenses for environmental protection measures increased by €39 million in the fiscal year.

The financial result decreased by €5,900 million to €4,009 million. The decline in net income from shareholdings resulted in particular from lower dividends of a Dutch subsidiary of BASF SE. These dividends resulted mainly from retained earnings in the previous year. Lower profit transfers, which were mainly influenced by a distribution of retained earnings from a Belgian Group company in the previous year, continued to have an impact. The increase in the interest result was mainly due to higher interest income from loans of financial assets to affiliated companies and lower interest expenses to affiliated companies.

Income before income taxes decreased by €4,839 million year on year to €3,006 million. Income tax expenses decreased by €109 million in the fiscal year. Due to deferred tax assets and liabilities, €121 million lower expenses were recorded in the business year. By contrast, current income tax expenses increased by €12 million.

Net income decreased by €4,730 million compared with the previous year to €2,704 million in 2024.