Brief: Raisio Sells Its Russian Consumer Business, Recognises Impairment Losses

Raisio Oyj

29/04/2022 13:55

April 29 (Reuters) - Raisio Oyj  RAIVV.HE :
    * RAISIO PLC TO SELL ITS RUSSIAN CONSUMER BUSINESS AND
RECOGNISE
IMPAIRMENT LOSSES
    * RAISIO HAS DECIDED TO SELL ITS CONSUMER BUSINESS IN RUSSIA
    * HAS SIGNED AGREEMENTS TO SELL OOO RAISIO NUTRITION,
SUBSIDIARY
RESPONSIBLE FOR RAISIO'S CONSUMER BUSINESS IN RUSSIA, TO RUSSIAN
COMPANY COPACKER AGRO LTD
    * AS A RESULT OF SALE, RAISIO WILL RECOGNISE AN ESTIMATED
IMPAIRMENT LOSS OF EUR 2.9 MILLION IN ITS Q1 EBIT
    * CUMULATIVE RUB/EUR TRANSLATION DIFFERENCE RELATED TO
RUSSIAN
CONSUMER BUSINESS IS EUR 2.3 MILLION AT END OF Q1
    * SALE OF OOO RAISIO NUTRITION AND NORDIC TRADEMARK IS
EXPECTED TO
BE COMPLETED BY END OF MAY
    * IMPAIRMENT LOSS RECOGNISED ON RUSSIAN CONSUMER BUSINESS
WILL NOT
AFFECT RAISIO GROUP'S COMPARABLE EBIT
    * TOTAL SALE PRICE IS APPROXIMATELY EUR 1.5 MILLION
    * UPON COMPLETION OF SALE, TOTAL LOSS IS ESTIMATED TO BE EUR
3.6
MILLION
    * FIGURES PRESENTED ARE PRELIMINARY ESTIMATES AND WILL BE
AFFECTED
BY FACTORS SUCH AS CHANGES IN RUB/EUR EXCHANGE RATE AT TIME OF
SALE
    * DIVESTMENT OF RUSSIAN CONSUMER BUSINESS WILL NOT
SIGNIFICANTLY
AFFECT OPERATING CONDITIONS OF RAISIO'S OTHER BUSINESSES
    * HAS EXPORTED FISH FEED TO RUSSIA FROM RAISIOAQUA, A GROUP
COMPANY OPERATING IN FINLAND
    * WILL RECOGNISE AN IMPAIRMENT LOSS OF EUR 4.1 MILLION ON
RAISIOAQUA'S FIXED ASSETS IN Q1 2022 EBIT
    * IMPAIRMENT WILL NOT AFFECT COMPARABLE EBIT AND WILL HAVE
NO CASH
FLOW IMPACT. APPROXIMATELY 65% OF RAISIOAQUA'S PRODUCTION HAS
BEEN DIRECTED TO RUSSIA

Source text for Eikon:  ID:nWkr1sVdvR 
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