Even the French agri-food giant Danone leaves the field russo albeit at a very high price: will give up to its unit “dairy and vegetable products (le edp, Essential Dairy and Plant-based)” in Russia, which represents the most of its activity in the country, maintaining only for a period the sector for the infant nutrition, but that will entail devaluation in the balance sheet for about one billion euros.
He says in a note from the company that in the first nine months of 2022 he had brought home 5% of his assets thanks to the Russian division net sales.
The share on the Paris stock exchange was quoted at 48,50 euros in the late morning today, up 1,71% against the current negative trend of the last year (-16,7%).
Danone leaves Russia: conditions are too tense
Danone was one of the few multinationals to have remained on Russian territory after the start of the war in Ukraine last February. The French group gave no information about the if and when of a possible resumption of Russian activities, nor to anyone who intends to transfer the activity. The transaction will be subject toapproval of the competent authorities. Danone, which in July had spoken of “operating conditions extremely thesis in Russia and Ukraine”, believes that the withdrawal represents for employees and consumers “the best option to ensure the continuity of the business.
The Russian one represents the fifth market for the French giant in terms of turnover, with around 90% of profits deriving from the sales of dairy and vegetable products, but it has a much lower weight in revenues.
Danone in Russia had 7.200 employees in June
On the occasion of the last half yearly, Danone had said it wanted to concentrate production precisely on EDP's essential products, as well as infant and medical foods, instead stopping imports of all Evian and Alpro products and new investments in Russia.
Still according to the data at the end of June, Danone almost counted 7.200 employees in Russia and operated in 13 production sites, including 12 from the division he wants to leave. Overall, the value of assets intangible assets and property, plant and equipment held by the subsidiaries in Russia amounted to €588 million and €410 million, respectively. Hence today's declaration of a maximum devaluation of 1 billion euros. Once closed, the transaction, which will be subject to regulatory approvals, will result in the deconsolidation of Danone EDP Russia's assets.
