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LPP SALPP fashion's write-offs related to Russian company to impact Q3 results by around PLN 788 mln
Listed fashion retail company LPP will implement write-off related to its former Russian unit Re Trading, the company has announced in a market filing. The move will impact LPP's consolidated and stand-alone net result for Q3 by approximately PLN 788 mln (EUR 185.9 mln), it added.
The write-off will concern the value of trading liabilities of around PLN 547 mln (EUR 124 mln) and liabilities due to the sale of Re Trading in the amount of approximately PLN 241 mln (EUR 56.9 mln).
The company also reported that the write-off was a non-cash event and as such it would not impair its financial situation, growth plans or dividend policy (including the future recommendation of the management board concerning the dividend for the 2025 financial year).
In May 2022, the company signed an agreement to sell 100 percent of its shares in RE Trading OOO, which was confirmed and legitimised by a Russian court decision, as LPP earlier said.
It now added that since the disinvestment of part of its Russian business in 2022, the company had reclaimed close on PLN 2.6 bln (EUR 613 mln) from this direction, including proceeds from the sale of products and shares in the Russian unit.
pel/ tom/
