Charge of 600 Million Euros Announced by Group Danone
Groupe Danone has incurred a one-time charge of approximately 600 million euros on its US and European HOD partnerships.
The one-time charge consists of an impairment of Danone’s holding in DS Waters and a provision for its related commitment to Suntory, Danone declares.
Danone' first entered into the US HOD market when it acquired McKesson Water Products, the leading HOD player on the West Coast, in early 2000. Late in 2003 Danone agreed to combine this business with the Suntory Water Group, a major nationwide HOD player; DS Waters, LLP was created from that merger.
Danone expects to have a solution regarding the long-term strategy for its holding in DS Waters, LLP by the end of the first half of 2005. The company has extended its review of HOD activities to
Danone full year 2004 audited results will be approved by the Board of Directors on February 10th and released on February 11th.