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French food giant to take $973 million hit from Russia exit | |
(1 day later) | |
Danone to transfer control of business in Europe's second largest economy | |
France’s Danone announced on Friday it was seeking a buyer for the Russian operations of its dairy and plant-based foods unit, adding that a sale could result in a write-off of over $970 million. | France’s Danone announced on Friday it was seeking a buyer for the Russian operations of its dairy and plant-based foods unit, adding that a sale could result in a write-off of over $970 million. |
“This is the best option to ensure long-term local business continuity,” the company’s statement read. It disclosed that the Russian dairy unit accounted for around 5% of the group’s net sales in the first nine months of the year. | “This is the best option to ensure long-term local business continuity,” the company’s statement read. It disclosed that the Russian dairy unit accounted for around 5% of the group’s net sales in the first nine months of the year. |
Danone did not say to whom its Russian business would be transferred, however, a source close to the matter told Reuters the firm could retain a stake in the dairy business. | Danone did not say to whom its Russian business would be transferred, however, a source close to the matter told Reuters the firm could retain a stake in the dairy business. |
“The board has just started a process that will lead to a transaction that could be a full sale or a partial sale,” the source reportedly said, adding that the aim was to no longer operate the business. | “The board has just started a process that will lead to a transaction that could be a full sale or a partial sale,” the source reportedly said, adding that the aim was to no longer operate the business. |
In March, the company said it would continue to produce essential dairy and infant nutrition products in Russia but had cut other ties with the country amid the sanctions. | In March, the company said it would continue to produce essential dairy and infant nutrition products in Russia but had cut other ties with the country amid the sanctions. |
At the time, it said it had ended all investments in Russia and would not take any cash, dividends or profits from its business there. | At the time, it said it had ended all investments in Russia and would not take any cash, dividends or profits from its business there. |
The company owns the country’s top dairy brand, Prostokvashino, with 12 production sites and 8,000 employees. | The company owns the country’s top dairy brand, Prostokvashino, with 12 production sites and 8,000 employees. |
For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
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