Danone has said that it does not expect the legal wrangle with Chinese partner Wahaha to have an impact on its full-year results.
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“We have said that while our Chinese performance may be down on last year we do not see the situation impeding our ability to meet the financial targets we have set,” a spokesperson told just-food today (26 April).
Earlier this week, Danone reaffirmed its full year guidance of like-for-like sales growth of 6-8%, operating income growth of 7-10% and eps growth of 10%.
Danone holds a 51% stake in its joint venture with Wahaha, which accounted for about 5% of Danone’s operating profit last year.
A dispute arose between the two groups because, according to Danone, Wahaha chairman Zong Qinghou has established factories and a sales company that produces and markets the same products as those covered by the joint venture agreement. Subsequently, Danone is pursuing legal action against the Chinese company.
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By GlobalDataIn an interview with French business daily Les Echos, Danone chief executive Franck Riboud said that the company will have a clearer indication of when the dispute will end on July. He added that the resolution will not necessarily involve a compromise.
