“Danone”, a giant of French dairy products Liquidation of over 90% of the distributor business in Russia.

Reuters news agency reported on October 14, 2565 that Danone, a French dairy and processed food producer, Announced that the company would relinquish control of its dairy business in Russia. The deal could lead to write-offs of up to 1 billion euros, or about $978 million.

Marking another major global company that ceased operations and left Russia during the war in Ukraine, Danone will liquidate businesses that represent approximately 90% of its operations in Russia. It will retain only the infant nutrition unit.

“It is the best option to guarantee the long-term continuity of the local business,” Danone said in a statement, adding that its Russian dairy unit accounted for about 5% of the group's net sales in the first nine months of the year.

Shares in Danone rose more than 1% in early trading. Analysts welcomed the news that the company was reducing its presence in Russia. It said this could herald a wider operational reshuffle.

Antoine de Saint-Afrique Chief Executive Officer who took over in September last year, said the company would spin off unperforming businesses under a turnaround plan launched this year.

“It's not just because Russia is a low-margin business with poor growth. This is mainly because this asset has been a distraction for senior management over the past 11 years.”

For other areas Where the group can examine non-core operations includes fluid milk and basic milk products in Brazil, Argentina, Mexico and Morocco, as well as organic milk in the United States. Baby food in France and Italy Including small water operations. in Spain and Poland

In March, Danone said it would continue producing essential dairy and infant nutrition products in Russia. But have cut off other relationships with countries involved in the war in Ukraine Moreover, the company has ceased all investments in Russia. and will not accept cash, dividends, or profits from the company's business there.

Note: 1 dollar = 1.0224 euro.

Reference: https://www.reuters.com/business/retail-consumer/danone-withdraw-russia-with-1-bln-write-off-result-2022-10-14/