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However, the world's largest yoghurt maker, which announced the
measures on Sunday, said it would continue to sell dairy and
baby food in Russia, its third largest market after France and
Spain.
Danone's new CEO Antoine de Saint-Affrique was among French
bosses who met with President Emmanuel Macron on Friday to
discuss the situation in Ukraine, a company spokesman said on
Monday, adding it was too early to assess the financial impact
of the decisions announced on Sunday.
Danone, which generates around 6% of its sales in Russia and
Ukraine combined, controls Russian dairy brand Prostokvashino.
It employs 1,000 people in Ukraine and 8,000 in Russia.
Danone shares had already fallen 9.9% since the start of this
year before Monday's decline.
Danone General Secretary Laurent Sacchi said in a statement on
the company’s website on Sunday that the company will continue
to monitor the situation in Ukraine, and would apply any
decisions made by the French authorities.
"We have decided to suspend all investment projects in Russia
but currently maintain our production and distribution of fresh
dairy products and infant nutrition to still meet the essential
food needs of the local population," he said.
Danone is due to hold a Capital Market Day on Tuesday when
Saint-Affrique will give details of his turnaround strategy for
the group.
He replaced Emmanuel Faber who was abruptly ousted as chairman
and CEO last year following clashes with some board members over
strategy and calls from activist funds for him to resign over
the group's lacklustre returns compared with some rivals.
(Reporting by Dominique Vidalon; Editing by Susan Fenton)
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