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.
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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.
