Essity, Sweden, has announced the divestment of its operations in Russia. The company has been working on the process since April 2022.
Jun 10, 2023
Essity, the hygiene and health company, has announced the divestment of its operations in Russia. The company has signed an agreement with a buyer and the transaction has been approved by the Russian authorities. The transaction is expected to be finalized during the second quarter of 2023.
The company began its divestment proceedings in April 2022 to exit the Russian market. Essity carried out an impairment of its assets valuing USD 159 million, approximately, in Russia in 2022. The same year Essity’s net sales in Russia amounted to approximately 2 percent of the Group’s total net sales.
The total earnings impact will be reported when the transaction is finalized but is not expected to have a material financial impact.