EQS-Adhoc

VARTA AG: VARTA AG updates restructuring concept

EQS-Ad-hoc: VARTA AG / Key word(s): Restructure of Company VARTA AG: VARTA AG updates restructuring concept 11-Apr-2024 / 20:34 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. VARTA AG, Ellwangen, ISIN: DE000A0TGJ55

 
Publication of inside information pursuant to Article 17 of Regulation (EU) No 596/2014 

 

VARTA AG updates restructuring concept

 

Ellwangen, April 11, 2024

 

VARTA AG is in the process of evaluating the restructuring program that was agreed with the financing banks and the majority shareholder at the beginning of July 2023 on the basis of an IDW S6 expert opinion prepared by a restructuring expert and which is to be implemented by the end of 2026. It has become apparent that the assumptions made in the existing IDW S6 expert opinion and the restructuring measures agreed on the basis of these assumptions and the recommended corporate strategy are no longer appropriate for the current economic situation of the VARTA Group in order to return to a profitable growth path by the end of the restructuring period. The reasons for this include a further deterioration in the economic environment for the VARTA Group’s various business areas, volatile forecast purchase volumes by customers, particularly in the area of small-format lithium-ion cells, an unexpected significant decline in demand for energy storage solutions from end consumers and due to high inventory levels in the retail sector, an aggressive pricing policy on the part of competitors and ongoing supply chain problems. In addition, the cyberattack on part of VARTA’s IT systems, which was published on February 13, 2024, led to a production standstill lasting several weeks and a further deterioration in the financial situation. The operational and financial consequences of this cyberattack cannot yet be fully assessed. Among other things, it has resulted in a postponement of the publication of the Company’s 2023 consolidated financial statements.