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.
President of Ukraine Volodymyr Zelensky said he wants the end of the war with Russia and spoke in favor of a diplomatic way to end it.
“I want to stop the war and end it. There is a diplomatic path, there is a military one. Any healthy person always chooses the diplomatic path, because he knows: even if it is difficult, it can stop the loss of thousands, tens of thousands, and with such neighbors hundreds of thousands, and maybe even millions of victims. I don’t want this. And any leader, whether he personally wants it or not, has no right to subjectively cancel the diplomatic path,” Zelensky said at a press conference in Kyiv on Saturday.
Since the beginning of Russia’s armed invasion of Ukraine, 93 enterprises have moved to Lviv region, the press service of the Lviv regional military administration reports.
“In general, we have processed more than 400 applications for relocation. Of the 93 enterprises that have already moved, 38 have started work,” Orest Filts, the head of the investment policy department at the administration, said.
According to him, representatives of food, chemical, furniture, light industry and woodworking moved to Lviv region. As Filts noted, among them is Gemini Espresso, a natural coffee company, and MatrolLux, a manufacturer of mattresses, upholstered and cabinet furniture.
According to him, two more machine-building enterprises are planning to start work soon – Wind Farms of Ukraine LLC, which is part of Kramatorsk Heavy Machine Tool Plant, and Pozhmashina, the only manufacturer of specialized firefighting equipment in Ukraine.
According to the estimates of the Lviv regional administration, more than 2,500 jobs will be created at the displaced enterprises.
Civilian casualties from February 24, when Russia started the war against Ukraine, to 24:00 on April 19 amounted to 5,121 civilians (4,966 in the report a day earlier), including 2,224 dead (2,104), reports the Office of the High Commissioner UN Human Rights on Tuesday.
The daily summary traditionally states that the increase in figures from the previous summary should not be attributed only to the cases that occurred on April 19, since during the day OHCHR also verified a number of cases that occurred in previous days, however, the increase in the number of deaths is the second largest the largest during the entire war.
“OHCHR believes that the actual figures are much higher as information is delayed from some areas of heavy fighting and many reports are still awaiting confirmation,” the UN data document notes.
According to him, this applies, for example, to Mariupol (Donetsk region), Izyum (Kharkiv region), Popasna (Luhansk region) and Borodianka (Kyiv region), where there are reports of numerous civilian casualties. They are subject to further verification and are not included in the above statistics.
“The majority of civilian deaths or injuries were caused by the use of explosive devices with a wide area of effect, including shelling from heavy artillery and multiple launch rocket systems, as well as rocket and air strikes,” the report says.
According to confirmed UN data, 631 men, 383 women, 61 boys and 42 girls died, while the sex of 70 children and 1037 adults has not yet been determined.
Among the 2,897 injured were 59 girls and 64 boys, as well as 157 children whose gender has not yet been determined.
Compared to the previous day, according to the UN, three children were killed and three more were injured.
OHCHR indicates that in Donetsk and Luhansk regions, as of midnight on April 20, there were 746 (660) dead and 1,078 (1,070) injured in government-controlled territory, and 79 (79) dead and 325 (320) injured in territory controlled by self-proclaimed “republics”.
In other regions of Ukraine under government control (in Kyiv, as well as in Zhytomyr, Zaporozhye, Kiev, Sumy, Odessa, Mykolaiv, Kharkiv, Kherson, Dnepropetrovsk, Cherkasy and Chernihiv regions), the UN recorded 1399 (1365) dead and 1494 (1472) wounded .
The report also states that, according to the Office of the Prosecutor General of Ukraine, as of 8:00 am on April 20, 205 (205) children were killed, 373 (367) were injured.
OTP Leasing LLC, the largest player in the market, has already purchased agricultural equipment worth UAH 100 million since the beginning of the war and intends to increase purchases to UAH 1 billion this spring, Andriy Pavlushin, CEO of the leasing company, said.
“The vast majority of customers paid their monthly payments even in these terrible 50 days of war,” he wrote on his Facebook page.
Pavlushin added that the company also helped the Ukrainian army for UAH 58 million in cars, trucks and money, and continues to do so.
On April 6, the CEO announced that after a 41-day break, OTP-Leasing again began financing existing proven agricultural clients of medium and small businesses, “those clients who paid invoices for March on time.”
Pavlushin then indicated that he had bought tractors and seeders for UAH 70 million during the week.
OOO “OTP Leasing” is a part of the European financial group OTP Group. The company was founded in June 2008 as a subsidiary of OTP Bank. Currently, according to the CEO, the company has 2,000 customers and 170 employees.
The company’s revenue for 9 months of 2021 decreased by 44.2% – to UAH 99.71 million, while net profit almost doubled – by 95.7%, to UAH 463.3 million, and assets increased by 31.5% – up to UAH 15.11 billion, including long-term receivables – by 29.2%, up to UAH 14 billion.
The French reinsurer SCOR tentatively estimates the volume of compensation as a result of Russia’s military attack on Ukraine at “a high double-digit figure in millions of euros”, while warning that the company could end the first quarter of 2022 with a loss.
As reported on the website of the reinsurer, SCOR became the first of the global reinsurers to publish information about how much the war in Ukraine could cost their business.
It is also noted that the total losses of the industry as a result of this war will be equivalent to a catastrophic event of a medium scale (from EUR15 billion to EUR30 billion). But given that hostilities affect insurance payouts, and given the considerable uncertainty as hostilities continue, it is now very difficult to give an accurate estimate, SCOR said.
By announcing early first quarter results, SCOR definitely wants to give shareholders and the market a picture of what to expect. SCOR’s strategy is to reserve funds “as large as possible as early as possible”.
The company is closely following the course of events in Ukraine, which makes it possible to adequately assess the potential impact of the aggressor’s military actions and international sanctions against Russia on global reinsurance.
SCOR emphasizes that its subsidiary in Russia has suspended the signing of new reinsurance contracts.
The company emphasizes that payments are expected under political risk, credit risk and aviation insurance reinsurance contracts.
The reinsurer noted that these payments will be attached to other payments in the first quarter of 2022, in particular for damage due to natural disasters (including floods in Australia, European snowstorms, drought in Brazil) and the continuation of the Covid-19 pandemic in the United States.
“Such situations will negatively affect the combined ratio for P&C insurance (property insurance), as well as the technical result of life and medical insurance. This is expected to lead to losses for the quarter,” the company notes.
SCOR also stated that the company is well capitalized and has a strong solvency ratio.
