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Danone Lost €1.2 Billion in Russia

ByLisa Luckas

03/22/2024
two white milk bottles
  • Danone Finalizes Sale of Russian Dairy Business to Vamin R LLC
  • Regulatory Approvals Obtained, Closing Expected Soon
  • Transfer Process Began in October 2022, Deconsolidation in July 2023
  • Total Loss Recognized at €1.2bn

Paris, France — Danone, the global food-products corporation, said Friday it successfully obtained the necessary Russian regulatory approvals to proceed with the disposal of its Essential Dairy and Plant-Based (EDP) business in Russia.

The transaction, involving the transfer of Danone’s EDP business to Vamin R LLC, a local entity, is anticipated to be finalized in the upcoming weeks.

The process of transferring the EDP business was initiated in October 2022, marking a strategic move by Danone to navigate the complex business landscape in Russia. This decision came after the company lost control over the management of EDP Russia in July 2023.

The financial implications of this strategic shift have been significant for Danone. The company has recognized a total loss of €1.2 billion in its accounts, reflecting the impact of this divestiture on its financial position. This disposal is seen as a part of Danone’s broader strategy to adapt to changing market conditions and to focus on its core business strengths in other regions.

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ByLisa Luckas

Lisa Luckas is a Sr. Business News Editor at Nobot.News.

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