Nutrition & Care

The Nutrition & Care segment consists of the Care Chemicals and the Nutrition & Health divisions. This segment serves the growing demands of food and feed producers and of the pharmaceutical, cosmetics, detergent and cleaner industries as well as the ever-increasing requirements of fast-moving consumer goods. We leverage the BASF Verbund to offer innovative products, combining application performance with beneficial sustainability profiles. We strive to expand our position as a leading provider of essential ingredients in the areas of nutrition, home and personal care, mainly through organic growth. We focus on growth markets, positioning ourselves as the preferred partner for the green and digital transformation of our customers.

Sales in the Nutrition & Care segment declined compared with 2023. The increase in sales of the Care Chemicals division was unable to offset a decline in sales in the Nutrition & Health division.

Sales performance was positively impacted by strong volume growth overall within the segment. The Care Chemicals division raised volumes in all business areas. However, the sales performance in the Nutrition & Health division declined slightly. Lower volumes due to force majeure on deliveries of selected precursors of vitamin A, vitamin E and carotenoids as well as of certain aroma ingredients as a result of a fire in the isophytol plant could not be offset by volume growth in almost all other business areas. On January 24, 2025, we lifted the force majeure for some of the aroma ingredients affected. It continues to remain in force for the other aroma substances and the precursors of vitamin A, vitamin E and carotenoids.

This sales decline of the segment resulted above all from competition-driven price decreases across all business areas.

Sales were also impacted by negative currency effects, particularly relating to the Argentine peso, the Brazilian real and the Turkish lira.

Both divisions considerably increased EBITDA before special items. In the Care Chemicals division, the increase was mainly the result of a volume-related rise in the contribution margin. Earnings for the Nutrition & Health division were above the prior-year level due to higher margins. Higher fixed costs, particularly as a result of the fire at the isopyhtol plant, had a negative impact on the division’s earnings growth.

Segment cash flow declined considerably compared with the previous year. The Nutrition & Health division recorded negative cash flow, in part as a result of higher expenditures for the investments in the aroma business in Zhanjiang, China, and Ludwigshafen, Germany. In addition, the reduction in inventories was less pronounced than in the previous year. Higher earnings improved cash flow. The Care Chemicals division recorded positive cash flow, although it was considerably below the figure for the previous year. Here, the increase in earnings was unable to compensate for cash tied up in inventories to support the positive sales performance. In contrast, a considerable reduction in inventories and receivables due to lower demand made a positive contribution to cash flow in the previous year.

Nutrition & Care – sales by region

By location of customer