- Sales increased by 11.1% to €87.3 billion in 2022, driven by higher prices.
- EBIT before special items fell by 11.5% to €6.9 billion due to lower margins and volumes.
- Cost-saving measures aim to save over €500 million annually by the end of 2024.
- Closure of specific plants and reduction in production capacities will be completed by 2026.
2022 Performance Overview
In 2022, sales increased by 11.1% to €87.3 billion, primarily driven by higher prices across almost all segments due to increased raw material and energy costs. However, EBIT before special items fell by 11.5% to €6.9 billion, attributed to lower margins and volumes in the Chemicals and Materials segments.
Segment Performance
The Agricultural Solutions segment saw a significant rise in EBIT before special items due to higher volumes and prices. The Nutrition & Care segment also experienced considerable growth, mainly from price-driven margin increases. Surface Technologies and Industrial Solutions segments reported higher earnings, supported by increased prices and volumes.
Impact of Energy Costs
Operational earnings were burdened by an additional €3.2 billion in energy costs, with Europe accounting for 84% of this increase. Higher natural gas costs were a significant factor, contributing to 69% of the overall rise in energy expenses.
Impairments and Net Income
Special items in EBIT amounted to minus €330 million, leading to a lower EBIT of €6.5 billion. Net income from shareholdings was significantly impacted by impairments on Wintershall Dea AG, resulting in a net income of minus €627 million for the year.
Cost-Saving Measures
A cost-saving program aims to save over €500 million annually by the end of 2024, focusing on non-production areas. Structural changes at the Ludwigshafen site are expected to reduce fixed costs by over €200 million annually by the end of 2026.
Future Outlook
For 2023, sales are expected to be between €84 billion and €87 billion, with EBIT before special items projected to decline to between €4.8 billion and €5.4 billion. The company anticipates a weak first half of 2023, followed by improved earnings in the second half, particularly in China.
