French group Danone announced on Friday that it plans to sell its “dairy and plant-based products” unit in Russia, which makes up the bulk of its business in the country.
“Danone today announces its decision to begin the process of transferring control of its Russia-based Essential Vegetable and Dairy Products (EDP) business,” the company announced.
Danone is one of the few multinationals to remain in Russia since the start of the war in Ukraine in February.
“The transaction will be subject to the approval of the relevant authorities,” the group said.
Danone added, however, that it will maintain activities in the field of “specialized nutrition”, which mainly produces infant milk (Blédina, Aptamil).
The French group, which spoke in July of “extremely tense operating conditions in Russia and Ukraine”, considers that this is the “best option to guarantee the continuity” of this activity with its employees and consumers.
Since January 2022, EDP’s activity in Russia “represents around 5% of Danone’s consolidated revenue”.
The operation could “suppose a depreciation of up to one billion euros” in their accounts, according to the group.
In March, Danone announced the maintenance of its activities in Russia, where it employs 8,000 people, while suspending its investments in the country.
Source: TSF
