Danone’s Profits Slump 4.1% as Morocco Boycott Fallout Continues

The multinational’s profit fell by 4.1% last year to 2.35 billion euros, mainly due to a 35% drop in Morocco, where a boycott operation was carried out on social networks to protest against the allegedly high prices of milk. Danone’s global sales fell by 2.1% over the last three months, the company said in a statement.

The impact of the 2018 boycott "on total net sales resulted in a decrease of -178 million euros compared to 2017 net sales, of which about two-thirds are due to milk sales losses and one-third to dairy product losses," Danone said.

Despite this bad news, Danone’s management in Morocco is trying to reassure investors, announcing a return to growth by the end of the year, as Moroccan consumers seem to be gradually returning to a brand that was once the undisputed leader.

To recall, three companies, Centrale Danone, Afriquia and Sidi Ali were the subject of an unprecedented boycott starting on April 20 last year on social networks.