Boycott campaign : After Centrale Danone, Oulmes issues a profit warning

After Centrale Danone, mineral water company «Les Eaux Minérales d’Oulmès» issued a profit warning, advising the stock market that profits will be lower than expected in 2018.

According to a statement published by French-language newspaper L'Economiste, Sidi Ali’ sales have «strongly declined».

«Les Eaux Minérales d’Oulmès has been subjected since April the 20th, to a boycott campaign. A campaign that reflects the difficulties Moroccan families face», said the company in a communiqué.

Since April, a viral boycott campaign started in Morocco, targeting the French company’s Moroccan subsidiary (centrale Danone), mineral water company Oulmes and the country’s leading fuel distributor Afriquia SMDC.

Earlier this month, Centralee Danone listed in the Casablanca Stock Exchange issued a profit warning. The Moroccan subsidiary of the Danone Group (which owns 99.68% of its shares) has witnessed, since the start the boycott campaign, a decline in its consolidated turnover of about -50%.

It also indicated that its net income will drop by -20% in the first half of 2018, which accounts for 150 million dirhams, compared to a profit of 56 million dirhams recorded during the same period last year, said a statement issued by the French company.