The following is a summary of the BASF SE (BASFY) Q1 2024 Earnings Call Transcript:
Financial Performance:
BASF Group reported Q1 revenue of EUR 17.6 billion, a decrease of 12% mainly due to lower sales prices across almost all segments.
EBITDA before special items was EUR 2.7 billion, slightly below the figure for the corresponding previous year quarter.
Net income decreased 12% to EUR 1.4 billion.
Cash flows from operating activities improved by 49% amounting to minus EUR 513 million and free cash flow stood at minus EUR 1.5 billion.
EBIT before special items suffered a 9% decline, amounting to EUR 1.8 billion.
Business Progress:
The global chemical production grew by 5.4% in Q1 2024 with strong growth in China boosting BASF's volume of chemicals, materials, nutrition, and care.
Continued improvement in the upstream businesses led to better utilization rates at the company's main plants positively impacting profitability.
The company foresees its efficiency and cost management measures starting to gain traction, which is a part of its path to become more efficient and customer-oriented.
Significant future contributions expected from the China Verbund project by 2026.
To enhance competitiveness, the company is projected to invest in cost-saving measures expecting annual savings of EUR 700 million by the end of 2026.
More details: BASF SE IR
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