31. Contingent Liabilities, Other Financial Obligations, and Legal Risks

Other Financial Obligations

The contingent liabilities under guarantees amounted to €75 million (previous year: €71 million).

Lease expenses in 2025 include expenses for short-term leases of €31 million (previous year: €32 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: €14 million). Total cash outflow for leases in 2025 was €125 million (previous year: €124 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.

Beiersdorf is the subject of two lawsuits in connection with the construction of a plant in Mexico in 2015. These cases involve claims made by subcontractors holding Beiersdorf and its general contractor jointly and severally liable for compensation for work performed and services provided. The first case has become legally binding and enforceable, for the second one, final appeals are still pending. As of December 31, 2025 Beiersdorf recorded provisions totaling €15 million (€10 million of damages and €5 million in interest) for risks in connection with the first case. No provision was recorded for the other case as Beiersdorf sees good chances to challenge this payment obligation legally. Overall, Beiersdorf expects to be reimbursed for these costs pursuant to a settlement agreement signed with the general contractor. However, since the strict threshold for realizing contingent assets was not met at the balance sheet date, no reimbursement claim was recorded.

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.