Jan 12 (Reuters) - German fragrances maker Symrise AG said on Monday it is in advanced talks to sell its terpenes business and that it would take a non-cash impairment of about 145 million euros ($
Symrise Confirms Unit Sale Talks and Swedencare Impairment Impacting Earnings
Symrise's Financial Outlook and Impairments
Jan 12 (Reuters) - German fragrances maker Symrise AG said on Monday it is in advanced talks to sell its terpenes business and that it would take a non-cash impairment of about 145 million euros ($169.22 million) related to the sale in the fourth quarter.
Details on Impairments
Symrise would also take another non-cash impairment of 150 million euros in the value of its investment in Swedencare AB in the quarter ending December 31.
Impact on Revenue Growth
"A non-cash impairment in the value of the investment in ... Swedencare AB will lead to a material deviation from the expected result for the 2025 financial year compared to current capital market expectations and the published forecast," the company said.
Share Buyback Program
Symrise holds a 40.8% stake in Swedencare, which makes veterinary pharmaceuticals.
Terpenes are organic compounds found in plants that are used in medicine, food, cosmetics and aromatherapy, to add different smells and flavors.
In October, Symrise had trimmed its full-year organic growth forecast for a second time in 2025, citing weaker consumer demand and challenging economic conditions.
The company had then forecast 2025 organic revenue growth in the range of 2.3% to 3.3%, down from its earlier forecast of 3% to 5%, but kept its outlook for an earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of around 21.5%.
Symrise on Monday did not give further details on how the expected impairments would affect its earnings, but said they would not have any impact on its liquidity or operating business.
In a separate announcement on the day, Symrise said it has launched a share buyback program worth 400 million euros.
($1 = 0.8569 euros)
(Reporting by Carlos Méndez in Mexico City; Editing by Sahal Muhammed)
