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BASIC INDUSTRIES: BASF (BASGR A3/A-/A): 2Q24 Results

BASIC INDUSTRIES

Neutral for spreads. Signs of improvement in some areas is encouraging, while agriculture weakness is a concern for companies with exposure there.

  • Revenue missed consensus by 4%, mainly on price pressure.
  • Adj. EBITDA missed by 2.5%. Agriculture remains very weak and was a drag. Materials and Surface Technologies marginally worse YoY, with growth in other segments.
  • FCF fell 48% YoY to €471mn with a mix of lower operating cash flows and higher capex. OCF was hit by lower dividends from equity-accounted companies and change in WC.
  • Net debt is marginally higher YoY at €21.4bn.
  • FY24 guidance is unchanged.

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