In July, the French company will propose that its shareholders “do not get paid.”
Rabat – The Moroccan subsidiary of Centrale Danone posted a net loss of MAD 538 million in 2018. The company’s gross revenue amounted to MAD 4.76 billion, down 27 percent compared to 2017.
Last year’s boycott on the Moroccan subsidiary of the French dairy company had a drastic impact on all activities.
Danone’s gross operating income declined by 75 percent to MAD 179 million. “The cost-saving plan launched after the boycott did not cover all of our fixed costs,” the group said in a statement.
The MAD 538 million loss is in line with the profit warning that the company announced in November. As a result of the nine-figure loss, the company’s assets decreased by MAD 653 million compared to 2017.
The company’s board said it would meet on June 14 and propose that no dividends be paid to shareholders.
The managers of the company said that due to the unprecedented crisis, Centrale Danone will keep doing “everything in its power to meet the needs of its consumers by remaining an accessible and even more innovative brand.”
“The consequences of this crisis will severely affect the company’s financial results for the first half of 2019,” they added.
In April 2018, Moroccans launched a boycott targeting Danone, Oulmes Mineral Water and Afriquia Gas, saying the three companies had raised prices because of their large share of their respective markets.
Oulmes Mineral Water, known for its subsidiary Sidi Ali, netted only MAD 9.74 million in the first half of 2018, down 87 percent from net earnings in the first half of 2017.
Ever since the Danone boycott, many Moroccans have called for similar actions. The wave of boycott calls targeted products like chicken, a public transportation company, and public figures such as pop star Saad Lamjarred.