By Giulia Petroni

 

Danone SA on Friday said that it will transfer control of its essential dairy and plant-based business in Russia, a move that could result in a write-off of up to 1 billion euros ($978 million).

The French food company said EDP Russia represented around 5% of its net sales and had a dilutive contribution to its organic sales growth and recurring operating margin over the first nine months of the year.

"This is the best option to ensure long-term local business continuity, for its employees, consumers and partners," Danone said.

The transaction, which is subject to regulatory approvals, will result in the deconsolidation of the company's EDP Russia business.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

October 14, 2022 02:37 ET (06:37 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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