Danone announces it plans to transfer the effective control of its EDP business in RussiaSource: OMX
Press release – Paris, October 14, 2022
Danone announces it plans to transfer
the effective control of its EDP business in Russia
Danone announces today it has decided to initiate a process to transfer the effective control of its Essential Dairy and Plant-based (EDP) business in Russia.
Danone considers that this is the best option to ensure long-term local business continuity, for its employees, consumers and partners.
Over the first 9 months of 2022, the EDP Russia business represented around 5% of Danone net sales and had a dilutive contribution to Danone’s like-for-like sales growth and recurring operating margin. The transaction could result in a write-off of up to €1 billion1.
Once closed, the transaction, which will be subject to regulatory approvals, will result in the deconsolidation of Danone’s EDP Russia business.
Danone’s priority remains to act responsibly and respectfully to its local employees, consumers, and partners throughout the process.
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About Danone (www.danone.com)
Danone is a leading global food and beverage company operating in three health-focused, fast-growing and on-trend categories: Essential Dairy & Plant-Based products, Waters and Specialized Nutrition. With a long-standing mission of bringing health through food to as many people as possible, Danone aims to inspire healthier and more sustainable eating and drinking practices while committing to achieve measurable nutritional, social, societal and environment impact. Danone has defined its Renew strategy to restore growth, competitiveness, and value creation for the long-term. With 100,000 employees, and products sold in over 120 markets, Danone generated €24.2 billion in sales in 2021. Danone’s portfolio includes leading international brands (Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, among others) as well as strong local and regional brands (including Aqua, Blédina, Bonafont, Cow & Gate, Mizone, Oikos and Silk). Listed on Euronext Paris and present on the OTCQX market via an ADR (American Depositary Receipt) program, Danone is a component stock of leading sustainability indexes including the ones managed by Vigeo Eiris and Sustainalytics, as well as the Ethibel Sustainability Index, the MSCI ESG Indexes, the FTSE4Good Index Series, Bloomberg Gender Equality Index, and the Access to Nutrition Index. By 2025, Danone aims to become one of the first multinational companies to obtain global B Corp™ certification.
1 Based on the accounts and foreign exchange rates as of June 30th, 2022