Atria will discontinue primary pork production in Russia and all production operations in Moscow – investments in the operations in St Petersburg will continue
Atria will discontinue the unprofitable primary pork production at the Campofarm farm. Production at the pork farm will be discontinued as soon as possible.
Furthermore, the Campomos industrial production and logistics unit located in Moscow will be discontinued by the end of 2014. Pizza production will be transferred to the Gorelovo plant in St Petersburg, where investments amounting to EUR 4.6 million will be made. Sales in Moscow will continue under the Campomos brand.
Atria will recognise EUR 25.0 million of non-recurring costs
Due to the discontinuation of primary pork production and of production operations in Moscow, Atria will recognise a total of EUR 25.0 million of non-recurring costs, EUR 17.4 million of which will be allocated to EBIT.
Of the non-recurring costs recognised as write-downs, EUR 14.3 million will be allocated to fixed assets, EUR 7.6 million to deferred tax assets and EUR 1.1 million to other assets. The write-downs, which total EUR 23.0 million, will have no effect on cash flow and will be recognised in Q3/2013. Furthermore, EUR 2.0 million will be recognised in Q4/2013 as a provision for expenses related to the discontinuation of the aforementioned operations.
For more information, please contact Juha Gröhn, CEO, Atria Plc, tel. +358 400 684 224.
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