Swedish Essity completes its exit from russia with a loss of $117 million
Essity exits russia by selling its business to the main owner United Medical Group
Swedish hygiene and healthcare products manufacturer Essity has completed the sale of its russian assets for about $117.34 million, the company said in a statement on Monday, Reuters reports.
The buyer is New Technologies LLC, the main owner of which is Igor Shilov, Essity said.
Essity, which produces products under the Zewa, Libero, and Libresse brands, announced its exit from the russian market in April 2022.
In 2022, Essity's net sales in russia accounted for about 2% of total consolidated net sales.
The negative effect on the company's profit, including the accumulated difference in exchange rates, will amount to about 0.5 billion kroons and will be reflected in the third quarter of 2023, Essity said in a statement.
Background. As it became known, putin took away from Danone and Carlsberg multibillion-dollar assets invested in russian branches, although russia was the largest market for both transnational giants until 2014.
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