Finnish Olvi will sell the Belarusian asset “Lida Pivo”
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The Finnish company producing alcoholic and non-alcoholic beverages Olvi intends to sell its Belarusian asset Lida Pivo. The manufacturer began preparations for the sale in March against the background of the announcement of its withdrawal from the Belarusian market after the start of the Russian special operation in Ukraine.
“The probability of selling Lidsky Pivo in the next 12 months is high. The abandonment of business in Belarus means a significant reduction in the group’s business, ”says a statement posted on the Olvi website. report.
It follows from the document that Belarus in 2021 accounted for 33.2% of sales, 21.1% of trade and 24.3% of operating profit. Planning and implementation of the withdrawal will entail one-time costs, the company notes. After the decision of the board of directors at a meeting on March 5 to leave the Belarusian market, Olvi stopped investing in Lida Pivo.
The volume of sales in the republic in the II quarter of this year decreased by one percent, but the turnover increased by 39.5%.
“The decline in sales was particularly affected by the cessation of exports from Russia, but, on the other hand, domestic demand remained good, and the market share of Lida Pivo increased. In the spring, a significant increase in prices was made, which increased the turnover,” the report says.
The company added that the sale of Lida Pivo requires the approval of local authorities and the antimonopoly authority, and the state will have the right of first refusal to purchase the asset. In June, the Belarusian government announced additional restrictions related to the sale of Western companies to shareholders operating in countries that fell under the sanctions.
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