ELLWANGEN (dpa-AFX) - The battery group Varta no longer considers its own restructuring concept to be sufficient. The assumptions made there and the measures agreed on this basis with the majority shareholder and financing banks are no longer adequate to return to a profitable growth course by the end of 2026. The concept is therefore being reviewed, the company announced on Thursday evening.

Varta cited a further deterioration in the economic conditions for the various business areas as one of the reasons for the assessment. In addition, there was an unexpected significant decline in demand for energy storage solutions from end consumers and due to high inventory levels in retail, an aggressive pricing policy by competitors and ongoing supply chain problems.

In addition, the recent cyberattack led to a production standstill lasting several weeks and a further deterioration in the financial situation, it said. The operational and financial consequences of this could not yet be fully assessed and would result, among other things, in the postponement of the publication of the 2023 consolidated financial statements.

Investors reacted nervously. The Varta share lost three percent on the Tradegate trading platform in an initial reaction./he/edh