Yesterday, BASF released its Q3 2024 performance report. According to the financial report, Q3 sales amounted to €15.7 billion, unchanged from the same period last year. Compared to Q3 2023, nearly all business areas experienced sales growth, driving overall sales performance.
In Q3 2024, the earnings before interest, taxes, depreciation, and amortization (EBITDA) margin, excluding special items, was 10.3%, up from 9.8% in the same period last year. In the “core business,” the EBITDA margin excluding special items increased by 3.6% to 13.4% in Q3 2024, compared to 9.8% last year.
According to the new strategy released at the end of September 2024, BASF is implementing differentiated management for its “core businesses” (chemicals, materials, industrial solutions, nutrition, and care) and its “autonomous businesses” that serve specific industries. The “autonomous businesses” are reported under surface treatment technologies and agricultural solutions.
Chief Financial Officer Dr. Dirk Elvermann provided an update on the ongoing cost reduction plan. Dr. Elvermann stated, ““We are on track to achieve the targeted €2.1 bilion annual cost savings by the end of 202The implementation of the cost savings programs announced in February 2023 is in full swing. ”
As of the end of September 2024, BASF has already achieved cost savings of approximately €800 million per year, with related one-time costs of about €500 million. By the end of this year, the company expects to achieve annual cost savings of over €800 million, with anticipated one-time costs of €550 million.
