Danone faces €1bn hit as it quits Russian dairy business

The group said in a brief statement that it had decided to transfer the "effective control" of its essential dairy and plant-based (EDP) business in Russia.

"Danone considers that this is the best option to ensure long-term local business continuity, for its employees, consumers and partners," it added.

It did not say who it would transfer control to, nor did it provide any further details regarding the timing of the deal.

It did, however, confirm that the transaction could result in a write-off of "up to €1bn". The business, which has 13 factories and more than 7,000 employees, represented around 5% of Danone’s net sales in the first nine months of this year. Danone posted total sales of €18bn in the nine months to September 2021.

A slew of multinational companies have moved to exit Russia and transfer ownership of assets following Moscow's invasion of Ukraine in February. Danone will continue sell baby formula in the country following the transfer of the EDP business.

Danone is due to publish third-quarter numbers on 27 October.

Shares in the Paris-listed firm were ahead nearly 2% as at 0915 BST.