Basf preliminary results: sales and Ebit below forecast, net income improved

(Picture from Basf internet website)

Expected Basf Group sales for the full year 2023 of 68,902 million euros are below the range of 73 billion to 76 billion euros forecasted by the company and below average analyst estimates for 2023 (70,579 million euros). Sales in 2022 amounted to 87,327 million euros.

The expected income from operations (Ebit) before special items of 3,806 million euros in 2023 is also below the range of 4 billion to 4.4 billion euros forecasted by Basf and below the level of average analyst estimates for 2023 (3,934 million euros). Ebit before special items in 2022 amounted to 6,878 million euros. The decrease compared with the prior year is due to sales-related lower margins, which could not be offset by the achieved fixed cost reduction.

Net income of Basf Group is expected to amount to 225 million euros in 2023. This is an improvement of 852 million compared with the 2022 figure (minus 627 million euros), which included non-cash-effective impairments on Russia-related assets of Wintershall Dea in the amount of 6.5 billion euros.