Although both prices and volumes of the company’s products have declined significantly, BASF expects that global demand may all pick up in the second half of 2023.
On July 13, BASF released an announcement to lower the guidance of the full-year sales and EBIT before special items.
According to preliminary estimates, the company’s second-quarter EBIT before special items of 1 billion euros ($1.11 billion), a sharp decline of 57%, but basically in line with analysts’ expectations (Vara: €10.18 million). The second-quarter sales expected to 17.3 billion euros ($19.3 billion), analysts expected 19.355 billion euros ($21.6 billion).
The reason for the weaker-than-expected second-quarter results is that the company’s product prices and volumes both fell significantly.
BASF said it would lower its full-year earnings guidance. EBIT before special items for the full year is expected to be 4-4.4 billion euros ($4.5 billion-$4.9 billion), while the company had expected 4.8-5.4 billion euros ($5.4 billion-$6 billion). Meanwhile, full-year sales are expected to be €73 billion-€76 billion ($81.4 billion-$84.7 billion), compared to the company’s original estimate of €84 billion-€87 billion ($93.6 billion- $97 billion).
In contrast, in the 2022 financial results, BASF Group EBIT before special items were €6.9 billion ($7.7 billion), with full-year sales of €87.3 billion ($97.3 billion). BASF expects that in the second half of 2023, global demand may all pick up.
It is reported that the BASF Group’s products are categorized into six major areas: chemicals, materials, industrial solutions, surface treatment technologies, nutrition and care, and agricultural solutions. Among them, cosmetic raw materials related business belongs to the field of chemicals, the core research direction is mainly in the sunscreen and active ingredients and surfactants, and its personal care product line includes almost all the raw material categories of personal care products.
In the Chinese market, head cosmetic and personal care companies such as Shanghai Jahwa, Uniasia Technology and LAF are BASF’s customers. Not only that, BASF also continues to introduce efficacy ingredients in China that are tailored to the needs of Chinese consumers and with Chinese characteristics.
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