The French agri-food giant Danone announced on Tuesday the sale of Horizon Organic and Wallaby, two American brands of organic dairy products, to the investment fund Platinum Equity, based in the United States, within the framework of its strategy to divest itself of activities considered non-commercial. . essential.
No amount was reported for the operation but, in 2022, the two brands represented around 3% of Danone’s total sales, which reached €27.6 billion that year.
“A dilutive impact”
Horizon Organic and Wallaby, which market in particular milk, yogurt, cheese and butter, however had “a dilutive impact on the growth of organic sales and on the group’s current operating margin”, by showing lower profitability, Danone stated in a statement.
Focus on “strong brands”
This sale should allow the group to focus on “strong, health-focused brands” and “reinvest in priority growth segments,” he added.
The group “will maintain an unconsolidated minority stake” in the two brands, according to the press release.
At the beginning of December, Danone announced negotiations for the sale of the French brand Michel et Augustin to CTH Invest, a Belgian holding company linked to Ferrero, as part of this same strategy.
In the third quarter of 2023, the group recorded a drop in sales of 5.8%, to 6.9 billion euros, weighed down by its withdrawal from Russia and the strength of the euro. On a comparable basis, however, they rose 6.2%, which analysts see as a sign of Danone’s good recovery.
Source: BFM TV
