LANXESS announces significant accounting adjustment for 2023

LANXESS Aktiengesellschaft recently disclosed the need for a goodwill impairment and an adjustment to the carrying value of its minority interests in Envalior when preparing its annual financial statements for year 2023. The depreciation, amounting to 413 million euros, affects the Flavors & Fragrances and Polymer Additives business units, following lower than expected demand, in particular for the years 2023 and 2024.

At the same time, the company anticipates a significant reduction in the value of its minority interest in the Envalior joint venture, which could amount to a low to mid-three-digit million euro amount. LANXESS specifies that these accounting adjustments will have no impact on its pre-exceptional EBITDA and are not linked to cash movements.

This information was communicated before the publication of the full results for the year 2023, scheduled for March 14. Pre-exceptional EBITDA is expected to be in line with market expectations, with a current consensus of 510 million euros.