Orkla Latvija has announced the sale of its convenience business in Latvia and Lithuania.
The business, which consists primarily of the supply of sandwiches to convenience stores and forecourt operators, was acquired by Orkla as part of its takeover of NP Foods in 2016.
Since then, it has been operated as part of the subsidiaries SIA Fresh Food Production (Latvia) and Margiris UAB (Lithuania).
In a statement, Orkla said that 100% of the shares in SIA Fresh Food Production has been sold to Lithuanian firm Mantinga UAB, while 100% of the shares in Margiris UAB has been sold to the company’s CEO, Audrius Daugela.
The value of the transactions has not been disclosed.
Orkla Latvija's convenience business generated around €10 million in sales last year. Following the divestment, the convenience business will be deconsolidated from Orkla’s financial statements from 1 June 2022 (equating to around €4 million in annual sales) and from 1 October 2022 (around €6 million in annual sales).
About Orkla Latvija
Orkla Latvija operates a broad portfolio of food, snack and chocolate products, including the brands Laima, Selga, Ādažu, Staburadze and Spilva. It also operates five production facilities.
In July, Orkla Group reported a 39% increase in operating profit in the second quarter of its financial year, to NOK 1.75 billion (€170 million).
Its branded consumer goods business saw 17% growth in second-quarter revenues, while the group was also 'positively affected' by the reopening of the foodservice and out of home channels.
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