According to Strauss' initial estimates, the economic damage to the company in its net profits following the large recall of Elite's candy factory in the Galilee landscape after the salmonella virus was discovered in some of its products is expected to stand at NIS 230-170 million in 2022, according to a company report today. (Thursday) to the Stock Exchange.
The report states: "In addition to the relevant estimates regarding the effects on the financial results in the first quarter of 2022, the estimates for 2022 as a whole include estimates regarding the costs of shutting down the confectionery plant to full production capacity, loss of profits according to forecasts. Additional ancillary costs as well as taking into account the company's assessment regarding the existence of insurance coverage for some of the damages caused to the company. "
Ofra Strauss on the salmonella affair, about two weeks ago: "Apologies for the sadness of the soul" // Photo: Moshe Ben Simhon
It was also written that as of the time of writing, the company can not assess the future impact on its market shares in confectionery products, and this is conditional, among other things, on the end of the plant shutdown and return to full operation and indirect effects of the recall event on the company's results. .
In addition, as of the date of the report, the Company is unable to assess the implications for legal proceedings related to the recall and shutdown of the plant, including legal proceedings already filed as detailed in the Company's reports dated 27.4.2022, 28.4.2022, 1.5.2022, 2.5.2022, 8.5.2022 and 9.5.2022, as well as additional procedures or requirements as may be submitted.
Recall that following the closure of the confectionery plant, the Food Service decided to suspend the proper production permit for the plant for a period of three months or until the defects found in it were remedied starting April 28th.
Strauss products in the supermarket (archive), Photo: Dudu Grishenfen
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