BASF Agricultural Products peak sales potential of €1.9 bn
14 Mar '06
3 min read
Chemical major BASF Agricultural Products is continuing its strategy of profitable growth with new and innovative products. In 2005, the division invested €303 million in research and development, an 11 percent increase compared to 2004.
The investment continues to pay off: The division expects to achieve total peak sales of €1,900 million with its pipeline of innovative active ingredients, about €100 million more than the previously published figure. These figures were presented by Mike Heinz, president of BASF's Agricultural Products division since December 1, 2005, in an investors' conference today (March 10, 2006).
In the past five years, BASF has introduced eight new crop protection active ingredients with peak sales potential of €1.2 billion. Part of this line-up is the fungicide metrafenone, which was launched in late 2005.
Successful new products are major contributors to profitability: With 26.9 percent, the EBITDA margin before special items surpassed the 25 percent margin target of the division for a second time in a row. “With this EBITDA margin we have once again set a profitability benchmark in our industry,” said Heinz.
The division's development pipeline also looks promising for the years ahead. BASF is currently working on a herbicide tolerance project and six active ingredients, including a new insecticide, which was elevated from discovery to development status in 2005. These inventions are expected to come to market from 2006 onward and have a peak sales potential of €700 million.
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