Profil:
LPP SALPP expects to receive compensation for fire in Romania within few months
Listed fashion group LPP expects to receive compensation from the insurer for property lost in the fire at warehouses in Romania within a few months, the deputy CEO Marcin Bojko said during a videoconference.
LPP reported in their report that one-off events influenced the group's results in the first half of 2025 in the category of other operating income and expenses.
Due to a fire that occurred on June 29, 2025, at the warehouse space leased by LPP Logistics Romania SRL in Romania, the group recognized in other operating income an estimate of future compensation based on the insurance policy for the entire property lost in the fire, amounting to PLN 351 million (EUR 82 mln).
At the same time, in other operating expenses, it recorded PLN 351 million (EUR 82 mln) as the estimated value of losses in fixed and current assets, including PLN 58 million (EUR 14 mln) for destroyed equipment and PLN 293 million (EUR 68 mln) for goods lost in the fire.
"Net effect on the profit and loss account is neutral," Bojko said.
"Regarding the property insurance part, this is, PLN 351 million, a down payment of just under 10 percent, which we requested, should arrive by the end of October. For the remaining amount, we are submitting documentation to the insurer, so it will take some more time, but we expect this within the next two to four months, still sometime this year," the deputy CEO said when asked when compensation for the lost property might be expected, he replied.
He explained that the second part of the insurance covered business interruption, and the company expects compensation for lost profits and incurred costs. Additional logistics costs are estimated at around PLN 10 million (EUR 2.3 mln) per month.
pel/ nl
