Lanxess identifies €413M impairment, may reduce value of stake in Envalior JV
General

Lanxess identifies €413M impairment, may reduce value of stake in Envalior JV

The reason for the impairment is a demand that has partly developed weaker than expected

  • By ICN Bureau | March 02, 2024

LANXESS identified an impairment requirement on goodwill amounting to € 413 million. The impairment incurred in the Business Units Flavors & Fragrances and Polymer Additives and reduces the goodwill recognized as part of the acquisitions.

The reason for the impairment is a demand that has partly developed weaker than expected in the respective Business Units, especially for the years 2023 and 2024.

In the course of the parallel and ongoing preparation of the financial statements at our joint venture Envalior, we also foresee the necessity of a material value reduction of our minority interest. This will likely result in a low to medium triple-digit million EUR amount.

The impairment analyses are not completed and not yet finally audited.

Neither the recognition of the impairment charges at LANXESS nor the reduction of the value of our minority interest have an effect on our EBITDA pre exceptionals, and are not cash relevant.

LANXESS will report its results for Full Year 2023 on 14 March 2024. EBITDA pre exceptionals is expected to be in line with market expectations. The consensus (Vara) for EBITDA pre exceptionals is currently at € 510 million.

Register Now to Attend NextGen Chemicals & Petrochemicals Summit 2024, 11-12 July 2024, Mumbai

Other Related stories

Startups

Chemical

Petrochemical

Energy

Digitization