French food group Danone launches portfolio review to cope with Covid-19 world
[PARIS] Danone said on Monday it was launching a review of its assets and reshaping its management to better cope with challenges stemming from the coronavirus pandemic.
The world's largest yoghurt maker, which is already looking at strategic options for 500 million euros (S$794.77 million)worth of assets in Argentina and for North American plant-based brand Vega, said it aimed to "rapidly reconnect" with its goal to deliver mid-term like-for-like sales growth of 3-5 per cent.
The consumer giant, owner of Evian and Badoit water and the Activia and actimel yoghurt brands also reinstated its forecasts for 2020, targeting a 14 per cent recurring operating margin and 1.8 billion euros of free cash flow.
Danone also announced that Chief Financial Officer Cecile Cabanis would leave the company in February to be replaced by Juergen Esser, currently CFO of the Waters and Africa divisions.
This came as Danone posted a 2.5 per cent drop in like-for-like third quarter sales, slightly worse than analysts expectations of a 2.2 per cent decline, as a fall in out-of-home consumption due to the pandemic continued to hit sales of its bottled waters division and travel restrictions in Asia weighed on its specialised nutrition sales in China.
Chairman and CEO Emmanuel Faber has had a strategy centered on diversifying the group's portfolio into fast-growing products featuring probiotics, protein and plant-based ingredients to mitigate slower growth in dairy.
SEE ALSO
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Danone shares have lost 25.30 per cent so far this year, lagging a 2 per cent gain for archrival Nestle and a 19 per cent fall in the CAC-40 index of French blue chips.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Gazelle Ventures makes cash offer for No Signboard shares at S$0.0021 apiece
Marina Bay Sands Q1 profit surges 51.5% to US$597 million on tourism boom
Swiss watch exports plunge as China and Hong Kong demand dries up
Cutting the cord?: Events leading up to Cordlife’s MOH suspension and arrests of its directors, ex-group CEO
Billionaires selling cheap stuff get richer from inflation pain
Amazon to push cashierless shopping tech into more third-party stores, while backing off itself