Gr. Sarantis: The Ergopack factory in Kaniv is temporarily closed

The turnover of the two subsidiaries of Gr. Saranti (Ergopack and Hoztorg) that are active in the markets of Ukraine and Russia represents a little over 7% of the total sales, the listed company states in a reply letter to the Hellenic Capital Market Commission.

At the same time, he notes that “following the current developments, and always guided by the safety of the staff, the ERGOPACK factory located in Kaniv, is temporarily closed, while the next steps of the company will depend on the course of events”.

In detail, Gr. Sarantis states the following:

The company GR. SARANTIS SA, following the question of the Hellenic Capital Market Commission dated 24.02.2022 regarding the recent developments in Ukraine, provides answers to the following specific issues:

(a) financial statements of their business report (percentage of turnover, markets and assets for the year 2021):

The company GR SARANTIS SA operates in the markets of Ukraine and Russia through its 100% subsidiaries ERGOPACK LLC and HOZTORG LLC respectively.

Ergopack LLC sales in 2021 represent 6.7% of the Group’s total sales and Hoztorg LLC sales in 2021 represent 0.5% of the Group συνο’s total sales.

Based on the year 2020, the EBIT of Ergopack LLC represents 2.96% and the EBIT of Hoztorg LLC 0.07% of the total EBIT of the Group, a ratio that is not expected to be significantly different in the year 2021 and will be announced soon as The Group’s results for the previous year have not yet been finalized.

Purchases from Ukraine relate to activities in this country and constitute less than 5% of the integrated markets.

Based on the first half of 2021, the assets of Ergopack LLC constitute 7.6% of the Group’s assets. Respectively, the assets of Hoztorg LLC constitute 0.2% of the Group’s assets. The ratio is not expected to be significantly different on 31.12.2021.

(b) an assessment of the possible impact on turnover, results and financial position, if possible here and otherwise:

To date, there has been no consequence of the escalating tension in the turnover, results and financial position of the subsidiaries, while forecasts for future effects are not feasible as events unfold in Ukraine.

It is noted that almost 50% of Ergopack’s sales come from exports to neighboring countries and which are based on USD.

c) any information you deem necessary for the correct and complete information of the investing public:

The management of the Group closely monitors the developments, and maintains frequent communication with the subsidiaries, from the first moment that the escalation started. Various special handling plans have already been studied and prepared depending on the evolution of the situation in order to ensure the future smooth operation of the subsidiaries, both in terms of supply chain and production, as well as to ensure the safety of employees.

Following the current developments, and always guided by the safety of the staff, the ERGOPACK factory located in Kaniv, is temporarily closed, while the next steps of the company will depend on the course of events.

Source: Capital

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