May 27, 2014

Petr Poroshenko confirmed his willingness to sell confectionery corporation Roshen.

According to analysts asked by Hubs, Roshen can cost around USD 1.2 billion. The price is derived from the calculation of two annual Roshen revenues and takes into account a discount of 40% due to the difficult political and economic situation in Ukraine.

The main factors that affect the deterioration of financial performance and a low estimate of Roshen:

• The income decrease due to the ban on the import of Roshen products to Russia. In 2013, in the structure of exports Russia took about 50%, the sales in Russia amounted to 15% of output product.
• Suspension of the two factories belonging to the corporation: Lipetsk (RF) and Mariupol confectioneries.
• Decrease of paying capacity of the Ukrainian population, which will lead to a further drop in Roshen income.

Roshen: the largest in Ukraine and twentieth in the world confectionery company in terms of turnover. In 2013, its revenue, according to the Global Top 100 Candy Industry ranking, was USD 1.021 billion, the corporation produced 450,000 tons of products. The Roshen empire includes several factories: four – in Ukraine, two – in Russia and one – in Lithuania.