Nestle Faces Limited Financial Impact from Russia Unit Seizure
Dow Jones09-18
1431 GMT - Russia's move to seize Nestle's business in the country casts a cloud over the terms of a potential sale of the unit, but the Swiss food group faces a limited financial impact otherwise, Vontobel's Jean-Philippe Bertschy says. "While negative for sentiment and raising the prospect of an asset impairment or unfavorable disposal, we expect a marginal financial impact, given Russia's limited contribution to group sales," Bertschy says in a research note. Russia accounted for around 2% of Nestle's sales in 2021, the last disclosed figure, but its current contribution is probably just over 1% given that the company significantly reduced activity in the country since then, the analyst says. Shares fall 2.4%.
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