Materials
Please note
The audited BASF Report will be published on March 21, 2025. The key financial figures published here are therefore to be regarded as preliminary. From today's perspective, no adjustments are expected.
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
In terms of production capacity, our Materials segment is one of the world’s leading suppliers of high-performance plastics as well as their precursors and home to the operating divisions Performance Materials and Monomers. With its broad portfolio of large-volume monomers and basic polymers in the isocyanate and polyamide value chains, the Monomers division follows a lean and cost-driven approach. The Performance Materials division offers innovative and customized solutions in engineering plastics, polyurethanes and thermoplastic polyurethanes, and creates value through cocreations with customers, particularly in the field of sustainability.
At a glance
€1,805 million
EBITDA before special items
2023: €1,650 million
€766 million
Segment cash flow
2023: €1,369 million
In the Materials segment, sales were below the prior-year figure in both operating divisions.
|
Materials |
Performance Materials |
Monomers |
|---|---|---|---|
Volumes |
2.1% |
0.7% |
3.5% |
Prices |
–5.5% |
–4.8% |
–6.2% |
Currencies |
–1.0% |
–1.2% |
–0.8% |
Portfolio |
–0.1% |
–0.2% |
– |
Sales |
–4.5% |
–5.5% |
–3.5% |
Both divisions were able to increase sales volumes, particularly in the Asia Pacific region. The Monomers division additionally increased volumes in Europe. In particular, it increased sales of MDI and propylene oxide. Volumes in the Performance Materials division were mainly higher for polyurethane systems.
However, the positive volume development was more than offset by negative price effects in all regions and value chains. The Monomers division reported the biggest price decline in the TDI business, with TDI prices in China plummeting to 2015 levels at times.
Currency effects, primarily relating to the Chinese renminbi, the Brazilian real and the South Korean won, had a slight negative impact on the segment’s sales performance.
EBITDA before special items grew in both divisions. The increase was attributable to a higher contribution margin in Europe due to higher volumes. Higher fixed costs had an offsetting effect. However, the cost savings measures implemented were unable to offset the contribution of positive one-off effects from the previous year.
The segment’s EBITDA included special items totaling –€37 million. Special charges resulted above all for expenses relating to adapting the production structure at the Verbund site in Ludwigshafen, Germany. Special income arose mainly from a contractually agreed one-time payment.
Segment cash flow for the Materials segment was considerably below the figure for the previous year. Cash tied up in the working capital of both divisions was a key factor in the cash flow decrease, whereas cash had been released in the previous year based primarily on systematic inventory reductions. Higher earnings and lower capital expenditures were unable to make up this deficit.
Million € |
|
2024 |
2023 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
13,510 |
14,149 |
–4.5% |
||||||||||
of which Performance Materials |
|
6,848 |
7,244 |
–5.5% |
||||||||||
Monomers |
|
6,661 |
6,905 |
–3.5% |
||||||||||
Intersegment transfers |
|
825 |
864 |
–4.5% |
||||||||||
Sales including transfers |
|
14,335 |
15,013 |
–4.5% |
||||||||||
EBITDA before special items |
|
1,805 |
1,650 |
9.4% |
||||||||||
Special items in EBITDA |
|
–37 |
–127 |
71.1% |
||||||||||
EBITDA |
|
1,769 |
1,523 |
16.1% |
||||||||||
EBITDA margin before special items |
% |
13.4 |
11.7 |
– |
||||||||||
Depreciation and amortizationa |
|
830 |
1,146 |
–27.6% |
||||||||||
EBIT before special items |
|
987 |
826 |
19.4% |
||||||||||
Special items in EBIT |
|
–48 |
–449 |
89.2% |
||||||||||
Income from operations (EBIT) |
|
939 |
378 |
148.6% |
||||||||||
Investments including acquisitionsb |
|
1,139 |
1,083 |
5.2% |
||||||||||
Segment cash flow |
|
766 |
1,369 |
–44.1% |
||||||||||
Assets (December 31) |
|
10,135 |
9,716 |
4.3% |
||||||||||
Research and development expenses |
|
180 |
185 |
–2.7% |
||||||||||
|
||||||||||||||
Materials – sales by region
By location of customer
These contents fulfill the disclosure requirements of the European Sustainability Reporting Standards (ESRS).