Danone deconsolidating financial results of Russian assets, will reflect it as 200 mln euro write-down

MOSCOW. July 26 (Interfax) - In July this year, the French food and beverage manufacturer Danone is excluding the financial results of its Russian business from its reporting after Russia took Danone Russia JSC under its temporary control.

As stated in the company financials, this will lead to a 200 million euro write-down of its fixed assets. In addition, the French company will record approximately 500 million euro in forex adjustments. This write-down is non-cash and will not affect the company's capital.

"Danone will continue to investigate the situation to understand the implications of the decisions of the Russian authorities on the ongoing EDP [Essential Dairy and Plant-based] operations of Danone in Russia, as well as on the ongoing sale process. Danone will continue to provide information on material developments related to the situation of its EDP operations in Russia and keeps investigating how to protect its assets and its rights as shareholder, with a first priority to ensure people safety," the company said in its report.

In the first half of the year, Danone SA increased its revenue 6.3% to 13.33 billion euros. Like-for-like sales increased 8.4%.

On July 16, Russian President Vladimir Putin signed a decree on the transfer of Danone's Russian business, JSC Danone Russia, to temporary management. The Federal Property Management Agency received 100% of the company's Russian business (83,292,493,000 shares of Produits Laitiers Frais Est Europe and 85,000 shares of Danone Trade).

Deputy Chairman of the Government of Chechnya Yakub Zakriev was appointed General Director of Danone Russia and Danone Trade.