Business Description

BASF SE is involved with the supply of chemical products. The company was founded in Ludwigshafen am Rhein, on April 6, 1865. Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, Agricultural Solutions, and Others are the company’s business segments. Chemicals supply intermediates as well as petrochemicals. Materials include polyamides, isocyanates, and inorganic base products as well as specialties for plastics and their processing.

Ingredients and solutions for consumer use are included in the Nutrition and Care segment. The Industrial Solutions segment develops and markets additives and ingredients for industrial applications. This includes polymer dispersions, pigments, resin electronic material, antioxidants, and other additives.

Surface Technologies is a combination of chemical solutions for surfaces with coatings and catalyst divisions. It includes nutrition, home care, as well as personal care. The Agricultural Solutions segment covers fungicides, herbicides, as well as a seed treatment. The Other segment focuses on commodity trading and engineering as well as rental income, leases, and leasing.

Key Financials

Revenue (US$ MN)

• BASF SE’s annual revenue for 2021 was US$ 81,943 Mn, a 15.78% increase from 2020
• The annual revenue generated by BASF SE in 2020 was US$ 70,773 Mn
• At a -4.69% decrease, BASF SE’s annual revenue of US$ 65,314 Mn was indexed in 2019
• BASF SE generated total revenue of US$ 68,529 Mn in 2018

Operating Income(US$ MN)

• BASF SE’s operating income for 2021 was US$ 1,975 Mn, a 35.39% increase from 2020
• The operating income generated by BASF SE in 2020 was US$ 1,459 Mn
• At a -31.95% decrease, BASF SE’s operating income of US$ 4,626 Mn was indexed in 2019
• BASF SE generated an operating income of US$ 6,798 Mn in 2018

Net Income(US$ MN)

• US$ 5,758 Mn was the net income generated by BASF SE in 2021
• BASF SE’s net income for 2020 was US$ -1,268 Mn, a -113.68% decrease from 2019
• From 2018’s net incomes, BASF SE registered a 73.11% increase in 2019, amounting to US$ 9,272 Mn
• A net income of US$ 5,356 Mn was generated in 2018 by BASF SE

Operating Margin %

• BASF SE’s operating margin for 2021 was 2%, a -850% decrease from 2020
• The operating margin generated by BASF SE in 2020 was %
• At a -28.28% decrease, BASF SE’s operating margin of 7% was indexed in 2019
• BASF SE generated an operating margin of 10% in 2018

Gross Margin %

• 24% was the gross margin generated by BASF SE in 2021
• BASF SE’s gross margin for 2020 was 26%, a -6.93% decrease from 2019
• From 2018’s gross margins, BASF SE registered a -6.48% decrease in 2019, amounting to 27%
• A gross margin of 29% was generated in 2018 by BASF SE

SWOT Analysis

Strengths

Geographical presence

The company is present in many different countries. The company has operations in over 90 countries around the world. Six Verbund production sites are operated by the company, along with 241 others. The company divides its operations geographically into five regions: Europe and North America, Asia Pacific, South America, Africa, and the Middle East.

The company’s FY2020 revenue was 41% in Europe, followed by North America (22.7%) and the Asia Pacific (25.2%), and South America, Africa, and the Middle East (6%) BASF’s geographic diversification helps to mitigate the risks of being too dependent on one market. It allows BASF to increase its brand equity and opens up new growth opportunities.

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