Finnish food company Raisio divests business in Russia (updated)
29/04/2022 15:27
(Adds detail, CEO comment)
April 29 (Reuters) - Finnish food company Raisio RAIVV.HE
said on Friday it has agreed to sell OOO Raisio Nutrition, its
consumer business in Russia, to Russian company Copacker Agro
Ltd for about 1.5 million euros ($1.6 million).
As a result of the sale, Raisio said there would be an
estimated impairment loss of 2.9 million euros in its
first-quarter earnings before interest and taxes (EBIT).
Raisio will also sell its Nordic trademark, which Raisio
Nutrition used among others in the Russian and Belarusian
markets, to Estonian company Nordgate Trading.
"The agreements concluded will allow a rapid and controlled
exit from Russia", Raisio's chief executive Pekka Kuusniemi said
in a statement, adding that the decision is in line with its
values after Russia's invasion of Ukraine.
The sale, which Raisio said will not significantly affect
its other business operations, is expected to be completed by
the end of May.
In 2021 Russia contributed 13% to Raisio's net sales.
The company also said it would recognise an impairment loss
of 4.1 million euros on its fish farm food business Raisioaqua's
fixed assets in its first-quarter EBIT as exports of fish feed
to Russia were suspended following the invasion of Ukraine.
($1 = 0.9504 euros)
(Reporting by Marta Frackowiak; Editing by Jan Harvey and Jane
Merriman)
((marta.frackowiak@thomsonreuters.com; +48 58 769 65 30;))