Mondelez estimated losses from war in Ukraine at $143 mln

The American company Mondelēz International, one of the world’s largest producers of snacks and confectionery, has estimated its losses and additional expenses in the first quarter of 2022 due to the war unleashed by Russia against Ukraine at $143 million (after taxes – $145 million).

“In February 2022, Russia launched a military invasion of Ukraine, and the company closed its operations and facilities in Ukraine. In March 2022, the company’s two Ukrainian production facilities in Trostianets and Vyshgorod were seriously affected,” the company said in a quarterly report on Tuesday evening.

According to him, this amount included $75 million reflected in the impairment of these and other assets and exit costs, $44 million in cost of sales and $24 million in marketing, general and administrative expenses.

As reported, PrJSC Mondelis Ukraine (formerly Kraft Foods Ukraine) is part of the Mondelēz International (USA) group of companies, the holding company of which is Mondelēz Nederland Services B.V (Netherlands).

The company in Ukraine includes the Trostyanets confectionery factory (Sumy region) and a subsidiary company “Chipsy Lux” LLC (Kyiv region).

Since 2003, Mondelis Ukraine has been managing business development in the Moldovan market, since 2005 – in the markets of Belarus, Georgia, Armenia and Azerbaijan, and since 2008 – also in the markets of Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan and Mongolia.

The company’s business in Ukraine as of autumn last year amounted to more than $400 million. Mondelis Ukraine invested more than $200 million in business development in Ukraine.

“Mondelis Ukraine” sells products under the trademarks “Korona”, Milka, “Vedmedic “Barni”, Tuc, “Belvita! Good Morning!”, “Lux”, Halls, Dirol, Picnic and others.

Tags: Ukraine, war