Home / News / Sweden-based Essity exits Russian market

Sweden-based Essity exits Russian market

20 Jul '23

1 min read

Pic: Essity

Insights

Essity has completed the divestment of its business in Russia following its decision to exit the market.
The company began the process in April 2022 and incurred an impairment of approximately SEK 1.7 billion.
The net sales in Russia accounted for about 2 per cent of Essity's total consolidated net sales in 2022.
The buyer is New Technologies, owned by Igor Shilov.

Sweden-based Essity began work in April 2022 to exit the Russian market and in 2022 an impairment was carried out of the company’s assets in Russia of approximately SEK 1.7 billon.

“Ever since the start of Russia’s war against Ukraine, we have been fully focused on exiting Russia. Today, we have completed the divestment of our business following a long and complex process,” said Magnus Groth, president and CEO of Essity.

In 2022, Essity’s net sales in Russia corresponded to about 2 per cent of its total consolidated net sales.

The buyer is the company New Technologies LLC, with the principal owner Igor Shilov. The earnings impact, including accumulated currency translation differences, amounts to approximately SEK -0.5 billion and will be reported as an item affecting comparability in the third quarter of 2023, the company said in a press release.

Fibre2Fashion News Desk (RR)