the Danone share increased more than 2% on Monday, after multinational food and beverage group has launched a review of its activities and revised its management, in an attempt to cope with the disruption caused by the COVID-19 pandemic.
Danone What sells products from the Danone range (Dannon in the United States) and Activia yogurts until Evian bottled water, said he aimed to “quickly reconnect” with his medium term objectives
, in particular by generating comparable sales growth of 3 to 5%.
To achieve this, he will perform a strategic review complete portfolio of brands, starting with Vega, the Mark
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Beginning of October, Danone has announced its intention to sell its stake 6.6% remaining on the Yakult brand of probiotic yogurt to consolidate its results.
The examination took place when Danone posted a 2.5% drop in like-for-like sales for the third quarter, slightly worse than the 2.2% drop expected by analysts.
the Danone shares, which have fallen more than 25% so far this year, were trading 1.54% more in the wee hours of the morning in Europe.
On the contrary, the actions of Nestle NESN, rival of Danone,
+ 0.44%
increased by 2% this year, while the PEP of Pepsi,
+ 0.21%
equities are up 3.7% and the ULVR of Unilever,
+ 0.28%
it increased by 12.4%.
Faber shifted the group’s portfolio into fast-growing areas, such as probiotics, herbal products, and without genetic modifications, to encourage consumers to adopt healthier and more sustainable eating and drinking habits. In June, he predicted that the pandemic will increase demand for healthier, more affordable food from millennials and other consumers.
“The irony is that a business focused on health and wellness cannot grow just when these qualities should be in short supply. The fourth quarter of February 2021 should be the start of a reprimand process, ”Jefferies analyst Martin Deboo wrote in a note ahead of third quarter sales.
“Our central conclusion is that Danone’s problem with the market is a matter of trust and security, as much as a matter of delivery itself,” added Deboo. He said Monday’s announcements were “steps in the right direction” on a road to recovery which he hopes will be “difficult”.
On Monday, Danone also announced that its chief financial officer, Cécile Cabanis, would leave the group in February to be replaced by Juergen Esser, who holds the same position for the water and Africa divisions of the company.
Danone has reset its forecast for 2020, targeting a recurring operating margin of 14% and 1.8 billion euros ($ 2.1 billion) in free cash flow.