Mondelez incurs $143-mln losses, extra costs from Ukraine events - report
KYIV. April 27 (Interfax-Ukraine) - The U.S. company Mondelez International, a leading producer of snacks and confectionary products, has posted $143 million loses and extra costs in the first quarter of 2022 ($145 million after tax).
The company said in a quarterly report released on Tuesday evening it shut down operations and facilities in Ukraine in February 2022, and two Ukrainian production facilities of the company in Trostyanets and Vyshhorod sustained serious damage in March.
This includes $75 million losses from 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 earlier, Mondelez Ukraine (formerly known as Kraft Foods Ukraine) is a unit of Mondelez International Group (U.S.) with the Mondelez Nederland Services B.V. holding (the Netherlands).
In Ukraine, the company operates the Trostyanets Confectionary Factory in the Sumy region and a subsidiary, LLC Luxe Chips in the Kyiv region.
Mondelez Ukraine has been managing business operations in Moldova since 2003, in Belarus, Georgia, Armenia and Azerbaijan since 2005, and in Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan, Turkmenistan and Mongolia since 2008.
As of last fall, the company had an over-$400-million business in Ukraine. Mondelez Ukraine invested over $200 million in the development of business in Ukraine.
Mondelez Ukraine sells products under the Corona, Milka, Vedmedyk Barni, Tuc, Belvita! Good Morning, Lux, Halls, Dirol, Picnic and some other tradenames.