German chemical firm BASF continues growth trend in Q2

09 Aug '21

2 min read

Pic: BASF

Backed by higher prices and volumes in all segments, the German chemical firm BASF has posted 56 per cent sales growth to €19.8 billion in second quarter (Q2) FY21 ended on June 30, 2021, against €12.7 billion in the same period of last year. Income from operations (EBIT) surpassed pre-pandemic figures from €1.0 billion to €2.3 billion (Q2 FY20: €59 million).

“The strong growth momentum of the previous two quarters has continued: Thanks to higher prices and volumes, we can present very strong second-quarter results today,” Dr Martin Brudermüller, chairman of the board of executive directors of BASF SE, said in a press release.

Sales in chemicals segment rose 91 per cent to €3.4 billion (€1.8 billion), primarily due to significantly higher price levels, owing largely to strong demand alongside lower product availability, according to the company. Moreover, materials and industrial solutions segment sales escalated to €3.7 billion (€2.1 billion) and €2.4 billion (€1.8 billion) respectively.

Regionally, sales from Europe during second quarter jumped 59 per cent to €8.0 billion (€5.0 billion), while North America recorded 62 per cent hike to €5.7 billion (€3.5 billion). Asia Pacific region gained 46 per cent sales to €5.0 billion €3.4 billion).

“Considerably higher earnings in our upstream businesses due to higher prices and volumes were the main driver for the strong increase in earnings overall,” Brudermüller added. “In our downstream segments, we also managed to increase volumes and prices based on strong demand.”

Due to the strong business development in the first half of FY21, the ongoing upturn of the global economy, and the considerable increase in earnings expectations in the chemicals and materials segments, the company expects full year sales to be between €74 billion and €77 billion, with EBIT before special items around €7.0 billion and €7.5 billion.

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