31. Contingent Liabilities, Other Financial Obligations, and Legal Risks
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Dec. 31, 2022 |
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Cash-changes |
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Non-cash changes |
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Dec. 31, 2023 |
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in cash flow from financing activities |
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Exchange rate effects |
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Changes in the scope of consolidation |
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Other changes1 |
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Loan liabilities |
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367 |
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–184 |
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— |
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— |
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— |
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183 |
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Lease liabilities |
|
191 |
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–68 |
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–2 |
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— |
|
112 |
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233 |
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Dec. 31, 2023 |
|
Cash-changes |
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Non-cash changes |
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Dec. 31, 2024 |
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|
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in cash flow from financing activities |
|
Exchange rate effects |
|
Changes in the scope of consolidation |
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Other changes1 |
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|||||
Loan liabilities |
|
183 |
|
–153 |
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— |
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— |
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— |
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30 |
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Lease liabilities |
|
233 |
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–75 |
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2 |
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— |
|
75 |
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235 |
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Other Financial Obligations
The contingent liabilities under guarantees amounted to €71 million (previous year: €107 million).
Lease expenses in 2024 include expenses for short-term leases of €32 million (previous year: €27 million), expenses for leases of low-value assets of €3 million (previous year: €3 million), and expenses from variable lease payments of €14 million (previous year: €10 million). Total cash outflow for leases in 2024 was €124 million (previous year: €108 million).
Legal Risks
The action brought by the insolvency administrator of Schlecker e.K. pending since 2016 in relation to completed German antitrust proceedings was dismissed at first and second instance. Following the plaintiff’s appeal against denial of leave to appeal, the Federal Court of Justice (BGH) granted leave to appeal without giving reasons. The BGH overturned the appeal judgment and referred the case back to the second instance for a new decision. The proceedings are also directed against six other companies. It includes a claim for damages jointly and severally against all defendants in the amount of around €200 million plus interest. Decisions on further claims for damages asserted in the courts of first and second instance in connection with these antitrust proceedings are still pending. In one of these proceedings, the Schleswig-Holstein Higher Regional Court issued a judgment on October 21, 2024 in which Beiersdorf was ordered to pay around €0.2 million plus interest. This judgment is not yet final. Beiersdorf continues to dispute the claims.
In addition to the provisions for legal disputes and disputed tax positions recognized in other provisions and income tax liabilities, there are contingent liabilities due to disputed indirect taxes in Brazil and excise taxes in Germany which were not recognized because it is believed that the asserted claims are unfounded and cannot be enforced.
Estimates regarding the course and outcome of legal disputes and tax and customs audits are associated with considerable difficulties and uncertainties. Results that deviate from our expectations may have an impact on the amount of costs and provisions or liabilities recognized. As at the reporting date, we assume that, based on the information currently available, no further significant charges are to be expected for the Group.