BaFin initiates examination of Eckert & Ziegler's 2024 consolidated financial statements

Background: Spin-off of Pentixapharm

The background to the examination is the spin-off of Pentixapharm completed in October 2024. According to the accounting rules, in-kind distributions to the owners of the spun-off company may only be accounted for without impact on profit or loss if the underlying asset — for example, shares in a company — is subject to the control of the same party before and after the distribution. If, however, there is a change of the controlling party, the derecognition must be recognized in profit or loss. According to BaFin's own statements, this is precisely where it sees indications of errors.

The company commented in a statement, explaining that it is in close and constructive dialogue with the supervisory authority. At the same time, Eckert & Ziegler pointed out: "Dies hätte zum Ausweis eines zusätzlichen Gewinns aus aufgegebenen Geschäftsbereichen im Konzernabschluss 2024 geführt, ohne weitere Kennzahlen oder die Folgejahre zu betreffen." The company emphasized that the operating key figures of the group would not be affected by a possible correction.

Reaction from the company and the stock

According to BaFin, the cause-based examination is usually carried out by the authority's auditors. The consolidated financial statements as of December 31, 2024 and the associated summarized management report are being examined. Should the authority actually identify errors, recognition of the spin-off effect in profit or loss could follow — and thus a retrospective correction of the reported result.

The Eckert & Ziegler stock reacted to the news with significant price losses. In pre-market trading on the Tradegate platform, the stock was temporarily traded 3.1 percent lower at 13.75 euros. Initially, according to market data, the stock had lost almost two percent before the losses widened further. As a result, the stock came under pressure, even though the company described the fundamental significance of the matter for the operating situation as limited.

Analyst voices remain positive

Regardless of the ongoing BaFin examination, analysts continue to view the stock positively. Joh. Berenberg, Gossler & Co. KG (Berenberg Bank) issued a buy recommendation for Eckert & Ziegler on September 24, 2025, as did Hauck Aufhäuser Lampe Privatbank AG on September 12, 2025. Two banks thus rate the stock as a buying opportunity despite the regulatory uncertainties.

BaFin emphasizes that cause-based examinations must be initiated as soon as there are concrete indications of incorrect accounting. This is the case regardless of a possible failure of the capital markets or a certain threshold value. In the case of Eckert & Ziegler, the examination was initiated on July 15, and the public announcement followed on Wednesday.

Possible consequences of the examination

The spin-off of Pentixapharm was an essential part of Eckert & Ziegler's group strategy in the past year. The question of whether the derecognition of assets and liabilities should have been without impact on profit or loss or recognized in profit or loss is closely linked to the identification of the ultimate controlling party. According to the accounting regulations, a party is considered the ultimate controlling party if, among other things, it has the ability to direct the relevant activities of the company.

Following the examination, BaFin can demand corrections to the consolidated financial statements or take further measures should the suspicion be confirmed. Until the examination is concluded, it remains open whether the reported figures for the 2024 financial year will remain in their present form or will be adjusted retrospectively. The company itself sees no impact on the operating key figures and emphasizes the constructive cooperation with the supervisory authority.

The report was distributed by the news agency dpa-AFX under the dateline Bonn.