Brief: Eurocash To Book About 80 Mln Zloty Write-Off

Eurocash SA

21/07/2021 06:35

July 21 (Reuters) - EUROCASH SA  EUR.WA :
    * SAID ON TUESDAY THAT COMPANY HAS RESOLVED TO CLOSE 59 OUT
OF ITS
414 RETAIL STORES BY END OF 2021
    * AS A RESULT THE COMPANY HAD TO BOOK ABOUT 80 MLN ZLOTY
WRITE-OFF
    * SAID WRITE-OFF WILL HAVE IMPACT ON 2021 FINANCIAL RESULTS
    * COMPANY SAID THIS DECISION WAS MADE AFTER ANALYSING
STORES'
PROFITABILITY AND POSSIBILITY TO INTRODUCE RECOVERY SCHEME FOR
INDIVIDUAL STORES
    * WITHOUT TAKING INTO ACCOUNT THE IMPACT OF THE WRITE-OFF
THAT
WILL BE MADE IN Q2 2021, THE DYNAMICS OF CHANGES IN EBITDA AFTER
IFRS 16 IN THE RETAIL SEGMENT IN Q2 2021 COMPARED TO Q2 2020
SHOULD REMAIN AT A SIMILAR LEVEL AS IN Q1 2021 COMPARED TO Q1
2020
    * THE DECISION TO CLOSE THE STORES WILL NOT AFFECT THE
RETAIL
DEVELOPMENT STRATEGY OF THE EUROCASH GROUP, AND IN THE LONG RUN
WILL TRANSLATE INTO AN IMPROVEMENT IN THE PROFITABILITY OF THE
RETAIL SEGMENT, WHICH SHOULD BE VISIBLE FROM NEXT YEAR

    
 Source text for Eikon:  urn:newsml:reuters.com:*:nEM1DdC9wa
    
 Further company coverage:  EUR.WA  
   


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