DANONE: Completion by Danone of the sale of its EDP business in Russia

Rhea-AI Summary

On May 17, 2024, Danone announced it has completed the sale of its Essential Dairy and Plant-based (EDP) business in Russia to Vamin R This follows the initial announcement on March 22, 2024, confirming the receipt of required Russian regulatory approvals for the transaction. The divestment is part of Danone's broader strategic initiative to streamline its portfolio and focus on key growth areas.

Positive

• Danone has successfully completed the sale of its EDP business in Russia, potentially enhancing its strategic focus.
• The transaction aligns with Danone's broader strategic initiatives to streamline its portfolio.
• Completion of the sale might result in a more focused and potentially more profitable business model in the long-term.

Negative

• The sale might lead to a short-term revenue decrease due to the loss of the EDP business segment in Russia.
• Potential market risks associated with exiting the Russian market could affect Danone's overall market presence.

Press release – Paris, May 17, 2024

Completion by Danone of the sale of its EDP business in Russia

Following the press release on March 22, 2024, where Danone announced that the Russian regulatory approvals required for the disposal of its EDP business in Russia to Vamin R LLC were obtained, Danone announces today it has completed this transaction.

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 almost 90,000 employees, and products sold in over 120 markets, Danone generated €27.6 billion in sales in 2023. 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 platform via an ADR (American Depositary Receipt) program, Danone is a component stock of leading sustainability indexes including the ones managed by Moody’s and Sustainalytics, as well as MSCI ESG Indexes, FTSE4Good Index Series, Bloomberg Gender Equality Index, and Access to Nutrition Index. Danone’s ambition is to be B Corp^TM certified at global level in 2025.

Attachment

• danonepr170524

FAQ

What is the significance of Danone completing the sale of its EDP business in Russia?

The sale allows Danone to streamline its portfolio and focus on key growth areas.

When did Danone receive regulatory approvals for the sale of its EDP business in Russia?

Danone received the necessary Russian regulatory approvals on March 22, 2024.

What company acquired Danone's EDP business in Russia?

Vamin R acquired Danone's EDP business in Russia.

How might the sale of Danone's EDP business in Russia affect its stock (DANOY)?

The completion of the sale could lead to a more focused business model, but may also result in short-term revenue loss.