PARIS — Russian authorities have taken temporary external administration of Danone Russia, according to Danone SA. The Paris-based company said it is prepared to protect its rights as shareholders of Danone Russia and the continuity of the business operations in the interest of its shareholders, particularly its employees. The decision will have no impact on Danone’s financial guidance for 2023, the company said.
Danone in October of 2022 announced it planned to transfer control of its EDP (essential dairy and plant-based products) business in Russia. The plan was on schedule, according to Danone. The business over the first nine months of the fiscal year accounted for about 5% of Danone net sales. The decision to transfer control came after Russia invaded Ukraine in February of 2022.