Filenews 22 March 2022 - by Theano Thiopoulou
The cost of the indirect side effects of the war in Ukraine continues to be measured by the listed companies of the CSE and some see that their balance sheet will be affected due to the uncertainty created by the reduction of the tourist flow and the increase in the prices of fuel, energy and a host of other products.
Last week several companies informed the investors with announcements of any influences they may have, mainly from the cost of fuel, while yesterday the announcements from commercial companies continued.
The well-known Cypriot company in the field of pasta and flour, Mitsidis, announced yesterday that it is closely monitoring the significant price increases and the uncertainty that the Russian-Ukrainian crisis is bringing to the global market for cereal, fuel and transport raw materials.
"The magnitude of the direct and indirect effects of the crisis remains uncertain at this stage and will depend on the duration and extent of the crisis. The group does not have any direct exposure to the Russian or Ukrainian market. However, there is an indirect exposure of the group to risks arising from possible negative effects on the Cypriot market, due to the possible decrease of the tourist flow during the summer months, the possible restriction of the service sector to international companies, as well as the possible increase in inflation, resulting in a decrease in consumer demand, which could negatively affect our clientele. The company closely monitors credit risk by strengthening its controls."
The announcement also states that the group is taking all appropriate measures to mitigate the negative effects of the significant increases in production costs, as well as to replenish cereal stocks.
The well-known trading group Malloupas & Papacostas, in an announcement to the CSE, last Friday, informed the investors that due to the crisis in Ukraine there are expected to be negative effects on this year's results. At this stage, it is noted, "the company monitors the developments and takes all necessary measures to address and minimize the negative impact". Other companies have informed that at this stage it is in the process of evaluating the new data.
