PMI Evaluates Megapolis Stake at $351 Million in Russia
According to a report by INTERFAX.RU on October 27, the international company Philip Morris International (PMI) has evaluated its 23% stake in the Russian tobacco distributor "Мегаполис" (Megapolis) to be worth $351 million. Therefore, the total value of the distributor's business can be estimated to be $1.5 billion.
PMI continues to closely monitor the potential risks associated with this investment, particularly due to the difficulty in predicting the fair value of these assets, which is influenced by currency and commodity market volatility, supply chain disruptions, as well as current economic, political, and social conditions.
In addition, PMI's financial report reflects a total foreign currency exchange loss of approximately $588 million related to Megapolis Distribution Company.
In 2023, investors associated with Megapolis became the owners of the Russian operations of the Imperial brand. The new owners renamed the companies under the Imperial brand to International Tobacco Group and Volga International Tobacco Group (production base).
According to the SPARK-Interfax analysis system, the revenue of Megapolis (JSC Megapolis Trading Company) in 2022 amounted to 973.5 billion rubles, compared to 901.9 billion rubles in 2021. The net profit for 2022 reached 21.6 billion rubles, up from 19.4 billion rubles in 2021.
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