Results of Operations

In the 2024 business year, sales stood at €65,260 million, compared with €68,902 million in the previous year. Considerable volume increases in some core businesses, coupled with slight volume growth in Agricultural Solutions, overcompensated for the decrease in sales volumes in Surface Technologies, which was due to the weak momentum in the automotive industry. The overall decline in sales, however, was mainly due to competition-driven price decreases in all segments. A particularly pronounced decline was seen in precious metal prices in the Surface Technologies segment. Currency effects further dampened sales performance.

Sequential development of sales

Billion €

Compared with the prior-year figure, EBITDA before special items¹ rose by €187 million to €7,858 million. This was due to higher earnings in our core businesses. In the Nutrition & Care, Industrial Solutions and Chemicals segments, EBITDA before special items grew considerably – mainly owing to a volume-related increase in the contribution margin – while it grew slightly in the Materials segment. This was offset by earnings declines in our standalone businesses. In Agricultural Solutions, EBITDA before special items declined considerably, mainly as a result of developments in the glufosinate-ammonium business and higher fixed costs, partly due to an insurance payment received in the previous year. The steep drop in precious metal prices and lower sales volumes in the Catalysts division played a substantial role in the slight earnings decline in Surface Technologies. The decrease in EBITDA before special items in Other was caused by currency results, hedging and other valuation effects contained in other expenses as well as lower earnings contributions from other businesses. The EBITDA margin before special items reached 12.0%, compared with 11.1% in the previous year.

Sequential development of EBITDA before special items

Billion €

EBITDA¹ amounted to €6,681 million, compared with €7,180 million in the prior-year period.

Special items² in EBITDA amounted to –€1,176 million in 2024. Special charges for restructuring measures in the amount of €667 million arose, in particular, for provisions in connection with the shutting down of glufosinate-ammonium production plants and the associated site closures in the Agricultural Solutions division, as well as for the conversion of the ERP system in the Coatings division for a differentiated steering of the business. In addition, special charges were incurred in connection with the cost savings program focusing on Europe and for modifications to the production structure at the Verbund site in Ludwigshafen, Germany. Special charges from other charges and income in the amount of €500 million included, in particular, charges in the amount of €301 million for the class settlement, which does not constitute any admission of liability, in connection with the aqueous film-forming foam (AFFF) multidistrict litigation in the United States.

EBIT came in at €2,033 million, down on the prior-year figure by €206 million (for more information, see the Statement of Income). Depreciation and amortization³ stood at €4,648 million (previous year: €4,941 million). This included impairments in the amount of €702 million, which mainly related to the battery materials business in the Surface Technologies segment. In the previous year, EBIT included impairments totaling around €1.1 billion.

We use the return on capital employed (ROCE) indicator to measure our rate of return. In 2024, ROCE was 5.1% (2023: 4.5%; for more information, see Our Steering Concept).