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Fire at the Ozon warehouse: How it will affect the company’s business and customers

A large warehouse of the logistics company Ozon burned down

A large warehouse of the logistics company Ozon burned down

A photo: MOSCOW City News Agency

On Wednesday, a large fire broke out in the suburbs. A large warehouse of the logistics company Ozon, one of the leaders in the delivery market in Russia, burned down. According to the preliminary version, the fire was not accidental. Investigators have two versions – either arson or carelessness during welding. The fire quickly spread due to cardboard boxes and an abundance of plastic packaging. A criminal case has been initiated. The entire chronology of events and the latest information – in the detailed material KP.RU. And we will try to figure out what will happen to the company’s business now.

– How much is the damage estimated?

– Preliminary estimate – 10 billion rubles. These are the calculations of the All-Russian Union of Insurers. The amount is great. For comparison, the current market capitalization of the company is about 300 billion rubles. And at its peak – in 2000 – the company was valued at almost 700 billion rubles. This fall should not be surprising. It has nothing to do with fire. Shares of almost all companies (both in Russia and abroad) have fallen 2-3 times over the past six months.

– Was there insurance?

– Oh sure. Such objects are insured by large companies without fail. So after a while the company will be reimbursed. As it became known, the warehouse building was insured by Alfa Insurance for 6 billion rubles, and its contents – by Ingosstrakh for 11 billion rubles.

– Will the compensation cover the losses of the company?

– It is unlikely that the payment will cover all the losses. Lost a major asset of the company. The lack of a large warehouse will slow down the company’s activities. At least in the next six months or a year, it will be necessary to rent commensurate areas, look for a place for a new warehouse, and then engage in its construction.

“According to our estimates, the potential costs will be about 10% of Ozon’s annual revenue. If insurance companies cover 17 billion rubles, the potential loss of Ozon for a possible excess of the amount of coverage will not exceed 1% of annual revenue,” says Lyudmila Telichko, chief analyst at PSB.

– Will the company survive after this?

– Ozon has been actively developing. But until recently it hasn’t been profitable. All the money went to expanding the network. For these purposes, funds from investors, including private ones, were actively attracted. Most likely, plans to reach a stable profit will have to be pushed back at least a couple of years. The loss of the main warehouse will, of course, affect the company’s activities. But in general, for a business, a fire will not be fatal. Insurers will get more losses. The head of the All-Russian Union of Insurers, Igor Yurgens, said that this would be one of the largest payments over the past few years.

– What will happen to the company’s shares now?

– Naturally, investors reacted to the news about the fire. After the first news appeared, the shares began to fall and fell by almost 7%. At the end of the day, the fall turned out to be much less, but only due to the fact that at the beginning of the day – before the fire – these shares rose sharply in price. In general, there are no prerequisites for further decline. Only every tenth product of the company was stored in the warehouse. That is, the company’s activities will not be suspended, more than 90% of the proceeds will remain.

– Will the money be returned to customers and companies whose goods burned down?

– In company promised to pay in full with victims, both customers and suppliers. But the calculation of losses and determining the amount of compensation can take a decent amount of time, the company explained.

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