R. STAHL writes off its investment in ZAVOD Goreltex in full

Waldenburg, 28 February 2024 - The Executive Board of R. STAHL AG today took the decision to fully write off its 25 percent investment in the Russian company ZAVOD Goreltex Co. Ltd., St. Petersburg.

Following the conversion of 75 percent of the shares of the previous majority owner (“Global Invest”) in ZAVOD Goreltex to ownership of the Russian Federation, the risk of the expropriation of R. STAHL’s minority shareholding has increased significantly. For this reason, based on current developments, the Executive Board of R. STAHL AG no longer assumes that the value of R. STAHL AG’s investment in ZAVOD Goreltex is recoverable. The investment will be fully impaired to its carrying amount of € 10.3 million in R. STAHL AG’s consolidated financial statements for 2023. The impairment will have a negative impact on the financial result. This step does not affect liquidity and has no impact on EBITDA pre exceptionals. Currency translation effects of € -3.2 million, which were previously recognized directly in equity due to the at-equity accounting of the investment, will be recognized in the financial result. In financial year 2023, these two transactions will lead to a non-cash charge of € 13.5 million on the R. STAHL Group’s net profit.

Explanations of the key financial figures used can be found on page 25 of the 2022 Annual Report of the R. STAHL Group on the Internet at: https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/financial-reports/

 

About R. STAHL - www.r-stahl.com

R. STAHL is the world's leading supplier of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in hazardous areas and contribute to the safety of people, machines and the environment. The portfolio ranges from products used in switching/distributing, installing, operating/monitoring, lighting and signalling/alarming up to automation.

Typical customers are the chemical and pharmaceutical industry, the oil & gas industry - including LNG applications - as well as the food and beverage industry. Most of the R. STAHL products are also approved for use with hydrogen. In 2023 according to preliminary figures global sales amounting to around € 330,6 million were generated by 1,721 employees. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).

 

Forward-looking statements

This release contains forward-looking statements based on assumptions and estimates of R. STAHL’s management. Although we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that these expectations will prove to be correct. The assumptions may involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Factors that may cause such discrepancies include: changes in the macroeconomic and business environment, exchange rate and interest rate fluctuations, the roll-out of competing products, a lack of acceptance of new products or services, and changes in business strategy. R. STAHL does not plan to update these forward-looking statements nor does it accept any obligation to do so.

Contact:
R. STAHL AG
Judith Schäuble
Director Investor Relations & Corporate Communications
Am Bahnhof 30
74638 Waldenburg (Württ.)
Germany