Home / News Draslovka investor note on Russia and Ukraine

Investors 03/04/2022
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Negligible impact on Operations

Following the invasion, Draslovka immediately issued force majeure notices to all of its clients and distributors in the Russian Federation, and discontinued any product supplies to the country. Draslovka does not buy any raw materials from Russian suppliers. 
Due to the escalating conflict, Draslovka took the difficult but safety-driven decision to pause supply to the small number of Ukraine-based clients.
Expected sales to Russia were about US$1MM, roughly 1% of European operations, and nothing from US operations. Overall, this means Draslovka has less than 0.3% revenue exposure to Russia and Ukraine region.
Draslovka does not import any raw materials from the region.

Minimal EBITDA impact

While we do not allocate EBITDA specifically, the products that are normally sold in the Russian market are agricultural products. The EBITDA for these products tends to be average or below average EBITDA margin levels. So we expect there to be an impact of no more than 0.3% of EBITDA. 

Draslovka assets

Draslovka has no physical assets in Russia or in Ukraine.
Draslovka has intangible assets in Russia, such as product registrations. These are held at book value of at around US$560k, and so are negligible.  
We do not expect these to be affected as these are investments into the product registrations and the service, documentation and data connected to the registration process. 
Under current predictions, the registration is not expected to not be threatened/adjusted in case there will be ongoing conflict between Russia and EU/US. In terms of exposure ratio, this is roughly 0.9% in Draslovka EU and around 0.1% as a whole group.

No exports from Russia and Ukraine.

Draslovka has no local production in Russia or Ukraine.

Local facilities from Russian banks


Acquisitions in pipeline

Draslovka group is acquiring MPS which is an asset in Australia and there is no acquisition in Russia and/or Ukraine signed or in the pipeline. Draslovka has traditionally avoided exposure to Russia.

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