Clariant divests Venezuelan operations for USD 1.8 million, triggering non-cash IFRS accounting impact while leaving cash flow and profitability targets unchanged.
Clariant, a globally active specialty chemicals company with a strong focus on sustainability and portfolio optimization, has announced the successful signing and completion of the divestment of its Venezuelan business operations. The transaction involves the sale of its local legal entity, Clariant Venezuela S.A., to CMV Química, C.A., a Venezuela-based company. The total consideration for the transaction amounts to approximately USD 1.8 million, which corresponds to around CHF 1.4 million at current exchange rates. This divestment forms part of Clariant’s broader, ongoing strategy to optimize its global operational footprint and focus resources on priority markets and growth platforms.
Clariant’s Venezuelan operations, while relatively small in scale compared to the Group’s global activities, have played a role in serving local customers and supporting industrial demand in the region. In the 2024 financial year, the business generated sales of approximately CHF 3 million and employed around 60 people. The divestment reflects Clariant’s assessment of regional market conditions and long-term strategic alignment, rather than the performance of the local team, which has continued to operate under challenging economic and regulatory circumstances.
As a result of the sale of its Venezuelan operations, Clariant will apply the relevant accounting treatment in line with International Financial Reporting Standards (IFRS). Specifically, a cumulative translation adjustment (CTA) of approximately CHF 236 million, which has been recorded over time as a separate component of equity within the balance sheet under cumulative translation reserves, will be reclassified and recycled through the income statement as part of the financial result. This adjustment reflects historical currency translation effects arising from the consolidation of Venezuelan operations in prior years.
Importantly, this reclassification of cumulative translation reserves is a non-cash accounting item. While it will have a visible impact on reported figures, it does not involve any actual cash outflow or affect the underlying cash-generating ability of the Group. The recycling of the CTA will reduce Clariant’s reported net profit and reported earnings per share (EPS) for the 2025 financial year. However, management has emphasized that this accounting effect does not change the company’s operational performance, financial resilience, or strategic priorities.
Clariant has also clarified that the accounting reclassification will have no impact on its cash flow statement. Furthermore, it does not affect the Board of Directors’ established shareholder distribution framework, under which capital allocation and returns to shareholders are determined. The company’s previously communicated profitability targets also remain unchanged. In particular, Clariant continues to target an EBITDA margin before exceptional items in the range of 17% to 18% for the 2025 financial year.
Overall, the divestment of the Venezuelan business represents a further step in Clariant’s disciplined approach to portfolio management. By exiting markets that are no longer considered strategically core, the company aims to simplify its structure, reduce complexity, and reallocate capital and management focus toward regions and segments with stronger long-term growth prospects and more stable operating environments. Management reiterated that sustainability, financial discipline, and value creation for stakeholders remain central to Clariant’s strategy as it continues to reshape its global footprint.
