Flora - comment

Flora is pursuing a small asset sale, with proceeds in the €100-200m range. This should have no impact on the bonds’ credit stats or trading levels. 

Flora has agreed to the proposed sale of part of its Latin American business to Alicorp, covering operations in 17 markets (excluding Mexico and Brazil) and a production facility in Cali, Colombia. Proceeds of €100–€200 million are intended to support liquidity and/or reduce debt. Completion is subject to regulatory approvals and customary conditions and is expected in 2026, with no certainty of closing.

To put the sale in context, Flora generated €1.2bn of revenue in the Americas in FY24. While the company does not disclose a full country breakdown, reported figures for the US and Canada imply that LATAM accounts for approximately €255m of sales. (Pg 53 FY24 Annual Report). The proposed transaction excludes Brazil and Mexico, so the precise perimeter remains unclear. However, assuming roughly 40% of the remaining LATAM business (excluding Brazil and Mexico), the assets being sold would generate approximately €100m in revenue and €30m in EBITDA.