French Food Company Danone To Dismiss Russian Dairy Business; Incur €1B Loss

  • French food company Danone SA GPDNF has decided to initiate a process to transfer the effective control of its Essential Dairy and Plant-based (EDP) business in Russia.
  • The transaction could result in a write-off of up to €1 billion.
  • The company decided as it felt the best option to ensure long-term local business continuity for its employees, consumers, and partners.
  • In the first nine months of 2022, the EDP Russia business represented around 5% of Danone's net sales.
  • In March, the company said it would continue to produce essential dairy and infant nutrition products in Russia, Reuters reported.
  • Danone did not disclose to whom its Essential Dairy and Plant-based (EDP) division - which has 7,200 employees and 12 production sites - would be transferred.
  • The move comes after automaker Nissan Motor Co Ltd NSANY offloaded its assets to the Russian state, incurring a loss of $687 million.
  • Price Action: GPDNF shares closed higher by 1.97% at $46.55 on Thursday.
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