Danone’s Moroccan Subsidiary Faces Steep Decline in Sales and Profits

Business seems to be declining at Centrale Danone. In the first half of 2019, the company’s turnover fell by 14% compared to the first half of 2018, from 2.61 to 2.24 billion dirhams, according to the dairy giant’s financial results.

As for the gross operating surplus, it recorded a 74% drop (from 167 million dirhams to 44 million dirhams). The net income, Group share (RNPG), will not be spared either. Its net loss more than doubled, going from 115 million dirhams in the first half of 2018 to 289 million dirhams in losses over the same period this year.

At the origin of these worrying financial results for Danone, a popular boycott notably of the company’s products, like the "Afriquia" service stations, and the "Sidi Ali" brand at the end of April last year.

The consequence was immediate: Centrale Danone’s net income had recorded 653 million dirhams less compared to 2017. Despite its current rather aggressive commercial policy, Centrale Danone is far from improving its turnover.