Russian food and beverage firm Lebedyansky has seen first-quarter profits tumble by 84% as it prepares for a shareholder vote on plans to split the business in two.
Lebedyansky, which makes baby food and mineral water for the Russian market, is also the country’s largest juice manufacturer.
The company posted an 84% slump in operating profit to US$5.5m due to higher raw material and packaging costs, as well as increased spending on advertising.
Revenue was up 17% to $245.3m as sales of baby food, water and juice all rose.
The results come as Lebedyansky gets ready for the proposed spin off of its baby food and water operations.
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By GlobalDataIn March, PepsiCo announced that it and one of its bottlers, Pepsi Bottling Group, had signed a deal to jointly acquire a 75.53% stake in Lebedyansky’s juice business.
Next Monday (16 June), shareholders will vote on plans to separate and spin off the company’s baby food and mineral water operations.