Danone to offload effective control of EDP business in Russia

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French food company has decided to begin a process of transferring the effective control of its essential dairy and plant-based business (EDP business) in .

According to Danone, the decision is appropriate for ensuring local business continuity in the long term for its employees, partners, and consumers.

However, the transaction may end up in a write-off of up to €1 billion, said the nutrition food product company.

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Danone revealed that during the first nine months of this year, its essential dairy and plant-based business in Russia made up nearly 5% of the company’s net sales. The business is also said to have weakened contribution to the like-for-like sales growth of Danone along with the recurring operating margin.

Danone to offload effective control of essential dairy and plant-based business in Russia

Danone to offload effective control of essential dairy and plant-based business in Russia. Photo courtesy of Szanand/Wikimedia Commons.

The closing of the deal, which is contingent on regulatory approvals, will see the deconsolidation of Danone’s essential dairy and plant-based business in Russia.

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The French food company stated: “Danone’s priority remains to act responsibly and respectfully to its local employees, consumers, and partners throughout the process.”

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