Unilever Rus Unilever Rus

The company has been operating on the Russian market since 1992.

Financial performance

2023: Decrease in revenue by 27%, to 62.02 billion rubles

Unilever's net profit in Russia in 2023 amounted to 9.22 billion rubles against 4.88 billion rubles in profit a year earlier. The revenue of Unilever Rus decreased by 27% - from 84.89 billion to 62.02 billion rubles. Such data are given in the reporting under RAS, which was published in April 2024.

According to Interfax, citing materials from Unilever Rus, which represents the interests of the British-Dutch concern Unilever in Russia, in 2023, profit from sales of legal entities amounted to 13.3 billion rubles against 21.96 billion rubles in 2022.

The company's advertising expenses in 2023 reached 4.5 billion rubles against 4.2 billion rubles in 2022 (an increase of 7.7%). The reporting notes that the indicator of advertising costs in 2022 was adjusted, the former was 21.7 billion rubles.

In mid-2023, Unilever CEO Hein Schumacher said that the company decided to continue working in Russia in a limited form, this is the "least bad" option in the current circumstances.

Unilever's annual profit in Russia halved

Unilever could abandon its business in Russia, but in this case, the top manager believes, this would lead to the nationalization of the company, "taking into account all the events that have happened recently."

None of the options are really good, but the ultimate choice to run our business in a limited format is the least bad, and that's what we've come to, "he said.

According to Irina Antyushina, director of corporate relations and sustainable development at Unilever in Russia and Belarus, Unilever's factories and offices in Russia continued to work in 2023 to ensure the country's domestic market. By the end of 2023, the Unilever group suspended investments, imports and exports of products to and from Russia.^[1]

2022

Decrease in sales in Russia to $937 million

Unilever valued its Russian business at 900 million euros

The British company Unilever does not exclude the likelihood of curtailing Russian business, which is estimated at €900 million. This is stated in the financial report published on February 9, 2023.

At the end of 2022, Unilever's turnover reached €60.07 billion, while a year earlier this figure was €52.44 billion. Thus, an increase of 14.5% was demonstrated. Revenue from sales of cosmetics on an annualized basis rose by 20.8%, reaching €12.3 billion. Personal hygiene products in 2022 brought in €13.6 billion, which is 15.9% more compared to 2021. Revenue in the home products segment rose by 17.3% to €12.4 billion. Food sales in 2022 reached €13.9 billion, which is 6.1% more than in the previous year. In the ice cream production segment, revenue rose by 14.8% to €7.9 billion.

The report says that Unilever's staff in Russia is more than 3 thousand people. In 2022, the Russian market accounted for 1.4% of revenue and 2% of the company's net profit. Unilever's assets in Russia include, among other things, four plants. In March 2022, the company announced the termination of imports and exports of products to and from Russia, as well as the suspension of any capital movements.

Unilever's position in Russia has not changed. Unilever enterprises in Omsk, Yekaterinburg, St. Petersburg and Tula continue their work, and offices - operating activities in the country, ensuring the presence of brands at points of sale. The company's priority remains to ensure the high quality and availability of its goods for Russian consumers, the Kommersant newspaper quoted the Unilever press service as saying.

In 2022, Unilever's net profit amounted to about €8.27 billion. This is 24.9% more compared to the result for 2021, when net profit was €6.62 billion^[2]

History

2024

Arnest Group bought Unilever for tens of billions of rubles

The Arnest group, headed by Alexei Sagal, in October 2024 announced the completion of a deal to acquire the Russian and Belarusian businesses of the multinational manufacturer of cosmetic products and household chemicals Unilever. The amount of the transaction was not officially disclosed, but according to experts interviewed by Kommersant, it can range from ₽35 billion to ₽40 billion.

As part of the transaction, Arnest receives four Unilever production sites located in Yekaterinburg, Omsk, St. Petersburg and Tula. Arnest President Alexei Sagal stressed that the company intends to implement an investment program and fulfill all social obligations that are an important component of the transaction.

Lipton tea bag (one of Unilever's brands)

Over the past year, we have carefully prepared Unilever Russia's business for possible sale. This work was very difficult and included the separation of IT platforms and supply chains, as well as the migration of brands into Cyrillic. The closure of this deal marks the end of Unilever Russia's presence in the country, according to the company's website.

The choice of Arnest as a buyer is not accidental - the company has been producing a number of goods for Unilever both for the domestic market and for export for more than 17 years. The Arnest group, founded in 1971, is a major manufacturer of perfumes and household chemicals in Russia, owning brands such as Dichlorofos and Beauty.

Alexey Popovichev, executive director of the Rusbrand association, suggests that part of Unilever's brands, including Inmarko ice cream and Clean Line cosmetics, are likely to be transferred to the new owner.^[3]

October 11, 2024 was the cost of selling the Russian business Unilever - it amounted to 520 million euros. The Arnest group of Alexei Sagal paid so much for these assets. For 0.5 billion euros, she received four production sites of the holding in Yekaterinburg, Omsk, St. Petersburg and Tula.

According to the executive director of the National Council for Perfumes, Cosmetics and Household Chemicals Andrei Samoilov, after the completion of the transaction, new product launches can be expected.

Arnest "is one of the largest sites in Russia for contract customers and has perhaps the largest experience in working with multinational companies, so the decision to sell assets to the Arnest group seems reasonable. The team of the now former Russian Unilever after the deal will expand its planning horizon and can confidently invest in long-term development in the Russian market. I think that after the sale of assets, we can also expect the launch of new brands - especially since Arnest already has successful experience in integrating foreign assets into the activities of its group and examples of bright launches with celebrities, "Andrei Samoilov told Izvestia.

Russification of brands in Russia

The British manufacturer of food and consumer goods Unilever (brands Dove, Rexona, Clear, Domestos, Cif and others) in June 2024 began Russification of its English-language brands issued in Russia. The company registers several trademarks with names in Cyrillic and logos.

2023: United Tea Company buys Unilever tea assets in Russia

The United Tea Company (OCHK) bought tea assets from Unilever in the Russian Federation. This became known on August 17, 2023.

According to Kommersant, OCHK bought the production facilities of the former Unilever tea factory and became the owner of the Beseda brand. According to the general director and co-owner of the United Tea Company Alexander Konov, the trademark will be restarted at the federal level. Production has already begun in St. Petersburg in August 2023, and Beseda will go on sale in September 2023. First, black tea in bags will be produced under the brand, then the range will expand.

The ORC portfolio previously included the Eastford, Berryford, Kama Sutra, Green Standard brands. The OCHK is also engaged in the packaging of products under the contract, including under its own brands of networks. According to the Unified State Register of Legal Entities, by mid-August 2023, Alexander Konov owns 50% of the company, 25% each from Alexander and Larisa Pronin. Alexander Pronin is the ex-general director of the Luzhniki sports complex, was the first vice-president of Avtovaz and was mentioned in the media as an adviser to the head of Rostec, Sergei Chemezov. Konov heads the Pyotr Konchalovsky Foundation, created by directors Nikita Mikhalkov and Andrei Konchalovsky.

The general director of the Rosschaikofe association, Ramaz Chanturia, in a conversation with the newspaper, noted that the Beseda brand remains recognizable, the new owner of the brand can expect to take a certain market share, but it will be difficult to reach the previous volumes.

Rusbrand executive director Alexei Popovichev notes that in the Unilever portfolio, Beseda was more of a brand of a low price segment, and the new owner will probably try to occupy a niche with this brand, where Lipton was present. According to the expert, there should be no difficulties with changing positioning, but restarting the brand will require investments in advertising.^[4]

2022

Elena Tyabutova appointed CEO of Unilever in Russia

September 19, 2022 it became known about the change of the general director of the Russian representative office of Unilever. It was Elena Tyabutova, who previously held the position of financial director in the company. Read more here

The company refuses to leave the Russian market

On May 25, 2022, it became known that the British company Unilever does not plan to leave the Russian Federation, its enterprises continue to work and produce products.

On August 1, 2022, it became known that the Unilever plant in St. Petersburg, which produces household chemicals and food, will continue to operate. The company is working to localize and find alternative raw materials and packaging solutions for all its categories.

Ukraine seeks to curtail the company's business in Russia

In March 2022, Ukrainian Ambassador to Britain Vadim Prystaiko reports in writing on attacks on Unilever so that it leaves Russia.

Unilever (Calve mayonnaise, Axe deodorants, Lipton tea and a lot of everything) did not immediately leave Russia. To push them to this, it took: 1) to send a note to the British Foreign Ministry; 2) Write a letter to the director of the company; 3) to organise a "spontaneous protest" in Downing Street.

The ambassador reported on all this in detail in a letter. "The embassy will continue to implement measures aimed at ensuring the full exit of Unilever Plc, as well as other companies that continue to work with the country," the document said, downloaded by XakNet Team from the servers of the Ukrainian Foreign Ministry.

2021

Sale of Ekaterra Tea Business

Unilever sold Ekaterra's tea business, including the Lipton and Brooke Bond brands, for €4.5 billion. The company announced this on November 19, 2021. The new owner of the Ekaterra division and its brands will be the fund of the consulting company CVC Capital Partners. Read more here.

Unilever sold Calve and Baltimore brands to KDV

On October 18, 2021, a deal was announced in which Unilever sold the Calve and Baltimore brands to the Russian company KDV. The parties to the agreement did not disclose its financial component.

According to the terms of the contract, KDV will acquire production in Tula, the Baltimore brand and will receive the right to dispose of the Calve brand in Russia and the CIS. The Russian company is going to maintain the profile of the Tula enterprise, as well as modernize it and expand it.

The divestment of the Calve and Baltimore brands aims to increase business performance, improve employee working conditions, and preserve product quality and consumer loyalty, the press release said.

After the completion of the transaction, Unilever in Russia will have an ice cream company in the Tula region, as well as factories in St. Petersburg, Yekaterinburg and Omsk.

Unilever did not have vertically integrated production in Russia, Artem Motorny, managing partner of Walnut Capital, told Kommersant. In this regard, the company's business did not have high profitability and significantly depended on the prices of vegetable oil, the analyst says.

According to the expert, in general, the market for traditional sauces is competitive and not very growing, but KDV has a progressive team and will have a good production base, so it will be able to develop new lines based on the Baltimore brand in growing niches, for example, Asian sauces or products for the hotel and restaurant business. To work with restaurants, KDV will need to restructure sales channels and start working with distributors, Motorny believes.

By October 2021, KDV production sites produce more than 800 types of confectionery, snacks, tea, coffee and other products (brands Yashkino, Crocant, Baby fox, Three Crusts, Kiriyeshki, etc.).^[5]

2020: The departure of Anton Afanasyev from the Russian representative office of Unilever

On November 3, 2020, Anton Afanasyev announced his departure from the Russian representative office of Unilever, in which he led the field of digital technologies and data management. He linked his dismissal to the need for career development, but refused to disclose further plans. Read more here.

2014: List of brands in Russia

For 2014, Unilever's brand portfolio in Russia includes such well-known food brands as:

• mayonnaise, ketchups and Calve sauces,
• Hellmann's mayonnaise,
• Rama spreads,
• vegetable curd creams Crème Bonjour,
• margarine for baking "Pyshka,"
• Knorr soups and seasonings,
• tea "Conversation," Brooke Bond and Lipton,

as well as popular trademarks of personal hygiene products and household chemicals:

• Dove shampoos and cosmetics,
• Clear vita ABE, Sunsilk and Timotei shampoos and hair care products,
• Rexona and Axe deodorants,
• cleaning and disinfectants Domestos, Cif and Glorix.

With the acquisition of the leading Russian ice cream producer, Inmarko, held in 2008, Unilever's product range was replenished with such ice cream brands as Ekzo, Magnat, San-Cremo, Golden Standard, etc. In July 2009, Unilever announced the acquisition of the Baltimore sauce business - the leader in the Russian ketchup market - with the brands of ketchup, mayonnaise and tomato paste Baltimore and East Gurman. In October 2011, Unilever announced an agreement to acquire an 82% stake in Kalina, the largest Russian manufacturer of cosmetic products.

2011:8 enterprises in Russia

In 2011 Unilever owns 8 Russian companies, including:

• margarine plant in Moscow,
• sauce, tea-and-vegetable factory and perfume and cosmetic factory in St. Petersburg,
• food factory and ice cream factory in Tula, as well as
• ice cream factories in Novosibirsk and Omsk.

2010: Investment in Russia's economy nears €1 billion

At the beginning of 2010, the company's total investment in the Russian economy is approaching 1 billion euros, and the number of employees exceeds 6,500 people.

Notes