July 24 (Reuters) - Reckitt Benckiser on Friday agreed to sell its Russian hygiene business to local consumer goods manufacturer Arnest Management, as the British company continues to reduce its presence in Russia.
The sale is another step forward in Reckitt's plans to transfer ownership of its Russian operations, which was first fleshed out in 2022, after several major Western peers drew criticism for continuing operations in the country since its invasion of Ukraine.
Reckitt said Russian government restrictions on foreign exits meant that the company would receive limited proceeds from the sale, which includes a Moscow production facility, locally-owned brand intellectual property and the transfer of around 400 employees to Arnest.
Its global brand intellectual property will not be part of the transaction and Reckitt will continue to retain its Russian health business, it said.
The company said it expects to book a post-tax loss of about £175 million ($233.05 million) on the deal for the full year, of which around £125 million will be logged in its first-half results, which are due on July 29.
The deal is not expected to have any material impact on its adjusted operating profit or adjusted earnings per share, Reckitt said.
($1 = 0.7509 pounds)
Reporting by Yamini Kalia in Bengaluru; Editing by Sonia Cheema
Source: Reuters