Clariant AG (Muttenz, Switzerland) announced that it signed and closed the divestment of its legal entity (Clariant Venezuela S.A.) in Venezuela for around $1.8 million (CHF ~ 1.4 million) to CMV Química, C.A., Venezuela as part of the ongoing footprint optimization. In 2024, Clariant’s operations in Venezuela generated sales of around CHF 3 million and employed around 60 people.
Following the divestment of the Group’s operations in Venezuela and in accordance with IFRS, a CHF ~ 236 million cumulative translation adjustments (CTA) currently recorded as a separate component in the equity of the balance sheet (“cumulative translation reserves”), will be recycled through the income statement within the financial result. This reclassification of the cumulative translation reserves is a noncash item. It will reduce reported net profit and reported earnings per share (EPS) for 2025. The reclassification and recycling will have no impact on Clariant’s cash flow statement, the Board of Director’s shareholder distribution framework and Clariant’s profitability guidance of EBITDA before exceptional items of 17 – 18 % for 2025.