Business Review
At a glance
- Sales slightly below previous year as a result of volume and currency effects
- Considerable increase in EBIT before special items due to price rises, among other factors
At €10,092 million, sales to third parties in the Agricultural Solutions segment in 2023 were slightly below the figure of the previous year. Considerably higher prices in almost all regions and indications were not fully able to compensate for lower volumes and negative currency effects. The decline in volumes was mainly driven by a change in market dynamics over the course of the year, primarily due to the significant channel destocking at distributors.
Volumes |
–6.5% |
|---|---|
Prices |
8.2% |
Currencies |
–3.5% |
Portfolio |
– |
Sales |
–1.8% |
In Europe, sales rose to €2,600 million due to considerably higher prices and were therefore €170 million higher than the prior-year figure. Considerably lower sales volumes for crop protection products and negative currency effects, mainly from the Turkish lira, had a negative impact on sales.
Sales in North America amounted to €4,002 million and were almost at prior-year level. This was mainly driven by both lower sales volumes, particularly of herbicides, and negative currency effects due to the Canadian dollar and U.S. dollar. Considerably higher price levels had an offsetting effect.
In Asia, sales of €1,072 million were €58 million lower than in the previous year. Considerably higher prices were unable to compensate for considerable negative currency effects, mainly from the Indian rupee and the Chinese renminbi, and significantly lower volumes, particularly for herbicides.
Sales in the region South America, Africa, Middle East amounted to €2,418 million, €294 million below the previous year. This was attributable to lower volumes in all indications and negative currency effects, mainly from the Argentine peso. Higher prices were unable to compensate for this.
|
|
2023 |
2022 |
+/– |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sales to third parties |
|
10,092 |
10,280 |
–1.8% |
||||||||||
Intersegment transfers |
|
36 |
40 |
–11.0% |
||||||||||
Sales including transfers |
|
10,128 |
10,320 |
–1.9% |
||||||||||
Income from operations before depreciation, amortization and special items |
|
2,270 |
1,928 |
17.7% |
||||||||||
Income from operations before depreciation and amortization (EBITDA) |
|
2,177 |
1,922 |
13.2% |
||||||||||
EBITDA margin before special items |
% |
22.5 |
18.8 |
– |
||||||||||
Depreciation and amortizationa |
|
1,046 |
701 |
49.2% |
||||||||||
Income from operations (EBIT) |
|
1,131 |
1,221 |
–7.4% |
||||||||||
Special items |
|
–433 |
1 |
. |
||||||||||
EBIT before special items |
|
1,563 |
1,220 |
28.1% |
||||||||||
Investments including acquisitionsb |
|
353 |
414 |
–14.7% |
||||||||||
Segment cash flow |
|
1,746 |
179 |
875.6% |
||||||||||
Assets |
|
16,089 |
17,071 |
–5.7% |
||||||||||
Return on capital employed (ROCE) |
% |
6.4 |
7.1 |
– |
||||||||||
Research and development expenses |
|
900 |
944 |
–4.6% |
||||||||||
|
||||||||||||||
Agricultural Solutions segment – sales
Indications and sectors
Income from operations (EBIT) before special items rose considerably compared with the previous year, by €343 million to €1,563 million, due to price increases, among other factors. A one-time payment that was received also had a positive impact on earnings.
EBIT declined by €91 million compared with 2022 to €1,131 million. This included special items in the amount of €433 million. Special charges arose mainly from impairments on production facilities in Europe as well as for measures in the context of the cost savings program focusing on Europe.
Division |
Europe |
North America |
Asia Pacific |
South America, Africa, Middle East |
Total (million €) |
|---|---|---|---|---|---|
Agricultural Solutions |
25.8% |
39.7% |
10.6% |
24.0% |
10,092 |