11. Intangible Assets

Goodwill and Intangible assets

The carrying amounts of goodwill decreased by €53 million compared with the previous year to €516 million (previous year: €569 million).

The change compared to the previous year is attributable to exchange rate effects. The other goodwill of the cash-generating units or groups of cash-generating units, as well as the growth rates and the cost of capital, are shown in the following overview:

The trademarks from the acquisition of the Coppertone business of €188 million (previous year: €188 million) are established in its markets and will continue to be advertised in future. The trademark rights therefore represent intangible assets with an indefinite useful life.

The trademark rights and customer relationships acquired as part of the Chantecaille acquisition were classified in full as intangible assets with finite useful lives. They are amortized over their useful lives. As at the reporting date, the carrying amount was €45 million (previous year: €54 million) and is subject to amortization of €8 million (previous year: €8 million).

As at December 31, 2025, all relevant cash-generating units and groups of cash-generating units were subjected to an impairment test for the purpose of assessing the recoverability of recognized goodwill and intangible assets with indefinite useful lives. The recoverable amount was determined on the basis of a value-in-use calculation using cash flow forecasts.

The key estimation parameters on which the impairment tests were based included market shares and sales growth rates as well as price trends for raw materials, gross profit margins, and corresponding discount rates. The detailed planning provides for moderate sales growth and an EBIT return on sales that is customary in the Group’s business. The detailed planning for the Chantecaille group of cash-generating units envisages sales growth that is significantly above average, in particular due to the introduction of new products and intensified market development, as well as increasing growth in the EBIT margin due to efficiency improvements and the elimination of negative one-off effects. The estimated future cash flows are based on financial planning with a planning horizon of five years. Cash flows beyond the planning period are extrapolated using an individual growth rate, taking external macroeconomic and business-specific factors into account.

Trade policy measures – including potentially increasing tariffs in the USA – have already been appropriately reflected in the respective financial planning. Based on current assessments, we do not expect potential changes in US tariffs to have a material impact on the forecasted cash flows.

The impairment tests of all cash-generating units and groups of cash-generating units did not reveal any significant impairment of goodwill or trademark rights in the year under review.

The effects of the persistently challenging market environment, characterized by elevated volatility and increasing uncertainty stemming from trade policy measures and geopolitical tensions, were reflected in comprehensive sensitivity analyses. The difference between the recoverable amount and the carrying amount of the group of cash‑generating units “Chantecaille”, determined as part of the impairment test prior to performing the sensitivity analyses, amounts to €53 million. An isolated increase of 0.7 percentage points in the weighted average cost of capital would result in the recoverable amount equaling the carrying amount of the group of cash-generating units “Chantecaille.” Similarly, a standalone reduction of 1 percentage point in the long‑term growth rate would lead to the same outcome. When considering only the long‑term EBIT margin, a decrease of 3.1 percentage points would produce a comparable effect. An isolated reduction of 1.8 percentage points in medium‑term revenue growth (currently in the low to mid double‑digit percentage range) would likewise cause the recoverable amount to equal the carrying amount.

For all other cash-generating units, the Group assumes that even in the event of reasonably possible changes to the parameters of the impairment test, the recoverable amount would exceed the carrying amount of the goodwill.