FULL YEAR: BASF'S SALES UP 33%, EARNINGS UP 118%--$8.7 BILLION
Feb. 25, 2022
Source: BASF news release
*Sales: €78.6 billion (plus 33 percent)
*EBIT before special items: €7.8 billion (plus 118 percent)
*Cash flows from operating activities: €7.2 billion (plus 34 percent);
*Free cash flow: €3.7 billion (plus 63 percent)
*Proposed dividend of €3.40 per share for the 2021 business year
*(2020: €3.30 per share)
*Sales of between €74 billion and €77 billion expected
*EBIT before special items of between €6.6 billion and €7.2 billion expected
*ROCE projected to be between 11.4 percent and 12.6 percent
*Anticipated CO2 emissions of between 19.6 million metric tons and 20.6 million metric tons
BASF Group significantly increased sales and earnings in the 2021 business year. "It was a strong and successful year for BASF," said Chairman of the Board of Executive Directors, Dr. Martin Brudermüller, who presented the BASF Report 2021 together with Chief Financial Officer Dr. Hans-Ulrich Engel.
"We increased sales prices by 25 percent and volumes by 11 percent. All segments achieved price and volume growth in 2021," said Brudermüller. BASF Group's sales amounted to €78.6 billion in 2021, 33 percent higher than in the previous year.
EBITDA before special items of €11.3 billion in 2021 was higher by €3.9 billion and EBITDA of €11.4 billion exceeded the prior-year figure by €4.9 billion.
At €7.8 billion, income from operations (EBIT) before special items more than doubled compared with 2020. This represented an increase of 67 percent compared with the pre-pandemic level in 2019. BASF's positive earnings development was mainly driven by the Chemicals and Materials segments. The Surface Technologies and Industrial Solutions segments also contributed considerably to the strong recovery.
Return on capital employed (ROCE) was 13.5 percent, after 1.7 percent in the previous year, and was significantly above the cost of capital rate of 9 percent. The increase in ROCE resulted mainly from the higher EBIT of €7.7 billion in 2021, which was considerably above the prior-year level.
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