Wedoany.com Report-Dec.22, Clariant AG announced the formal completion of the sale of its legal entity in Venezuela, Clariant Venezuela C.A., to the Venezuelan company CMV Química S.A., for a transaction amount of approximately USD 1.8 million. This move is part of Clariant's ongoing efforts to optimize its global business portfolio. The decision was based on a strategic assessment of the company's global market footprint.

Following the divestment of its Venezuelan business, and in accordance with International Financial Reporting Standards (IFRS), the cumulative currency translation adjustment reserve of approximately CHF 236 million, which is currently presented separately within equity on the balance sheet, will be reclassified through the income statement. This accounting treatment is a non-cash item and is expected to result in a reduction of Clariant's reported net profit and earnings per share for 2025.

Clariant stated that this reclassification of the cumulative currency translation reserve will not have any impact on the company's cash flow, the Board of Directors' future shareholder distribution proposals, or the 2025 EBITDA margin before exceptional items expectation (17%-18%). Prior to this sale, Clariant's business in Venezuela generated sales of approximately CHF 3 million in 2024 and employed around 60 people. This divestment marks an adjustment to Clariant's business portfolio in South America.