Finland-based food group Atria has said it will end primary pork production in Russia.
Atria said the “unprofitable” pork operations at its Campofarm farm would be wound down by the end of 2014.
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The company also plans to end pizza production in Moscow and said that facility would also close by the end of next year. Pizza production will move to a plant in St Petersburg, where Atria plans to spend EUR4.6m (US$3.9m) to cater for the switch.
However, Atria said the moves would also lead to one-off costs of EUR25m, which means it now expects its EBIT this year to be lower than 2012. Last year, Atria posted EBIT of EUR30.2m. Without the charges, Atria said it expects EBIT this year to be above the level reached in 2012.
The group will report its third-quarter results on 1 November.
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