Steering Clear of Trouble: Varta Regains Normal Operation Following Difficulties
Varta AG Stabilizes Financially After Tumultuous Year
Ellwangen, Germany - Battery manufacturer Varta AG has announced that it is in a financially stabilized but still recovery phase, following a significant restructuring process in 2024. The restructuring was a crucial step for Varta to prevent bankruptcy, as stated by Michael Ostermann, the CEO of Varta AG.
The company reported a loss of €64.5 million for the year 2024, a significant improvement compared to the previous year's loss of €414.3 million. This decrease in revenue from €820.3 million to €793.2 million in 2024 was mainly due to restructuring costs and a cyber-attack. However, adjusted EBITDA improved to €30.6 million, indicating operational stabilization.
The restructuring process marked a significant change in Varta's business strategy. It was based on Germany’s StaRUG law, with a debt write-off of €285 million by banks, new investment by major shareholders Porsche and Michael Tojner, and shareholder equity wiped out by capital reduction. Porsche also obtained control of Varta’s V4Drive battery business for electric vehicles.
In light of these changes, Varta is now focusing on putting the company back on a profitable and sustainable track. The company is emphasizing its Power Pack Solutions division, developing tailored battery solutions, and expanding into sustainable cell technologies and energy infrastructure, focusing on the European market.
Michael Ostermann emphasized the need for clear strategic focus, operational discipline, and the consistent development of Varta AG. He also highlighted the importance of innovation investment in continuing the company's turnaround. Trading of VARTA AG stock was suspended in March 2025 ahead of delisting.
The restructuring process was aimed at helping Varta avoid insolvency and laid the groundwork for a return to a profitable and sustainable business track. However, it did significantly impact Varta's financial situation in 2024. Existing shareholders were squeezed out during the restructuring process.
Looking forward, Varta AG is focusing on continuing its course after the tumultuous business year. The company is optimistic about its future and is committed to maintaining operational discipline and investing in innovation to ensure sustainable growth.
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- The restructuring process, based on Germany’s StaRUG law, involved a debt write-off of €285 million by banks, new investment by major shareholders Porsche and Michael Tojner, and a shareholder equity wipeout by capital reduction - actions taken to financially stabilize Varta AG within the industry.
- Moving forward, Varta AG is emphasizing its Power Pack Solutions division, developing tailored battery solutions, and expanding into sustainable cell technologies and energy infrastructure, focusing on the European market - steps taken as part of Varta's new business strategy in the finance sector to achieve sustainable growth.
