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OFFON
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    BN   FR0000120644

DANONE

(BN)
  Report
Real-time Quote. Real-time Euronext Paris - 11/26 11:35:26 am
54.33 EUR   -3.14%
11/23DANONE : Receives a Sell rating from UBS
MD
11/17Danone to switch dairy factory to plant-based Alpro as diets shift
RE
11/16Danone to Sell Denmark Water-and-Beverage Business Aqua d'Or
DJ
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Danone : warns of growing cost pressures into 2022

10/19/2021 | 06:23am EST
FILE PHOTO: Logo of French food group Danone at the company headquarters in Rueil-Malmaison

PARIS (Reuters) - Danone warned of growing inflationary pressures next year after sticking by its 2021 guidance on Tuesday despite rising costs and slower quarterly sales growth that highlighted the scale of challenges facing its new chief executive.

Antoine de Saint-Affrique, who took over as CEO in September, told analysts it was too early to "formulate a credible path forward", adding that he is focusing mainly on sustainability, innovation and flawless execution.

He said he would provide details of his turnaround strategy when Danone releases annual results on Feb. 23 and at a capital markets day on March 8.

The consumer goods giant, owner of Evian and Badoit water and Activia yoghurt, earlier reiterated that it expects its full-year 2021 recurring operating margin to be broadly in line with the 14% achieved last year, banking on productivity gains and pricing to counter inflationary pressures.

"Like just about everyone across the sector and beyond, we see inflationary pressures across the board. What started as increased inflation on material costs evolved into widespread constraints impacting our supply chain in many parts of the world," said finance chief Juergen Esser.

RISING COSTS

Cost inflation of 8% for 2021 as a whole is expected to worsen next year, Esser said. He said costs are likely to rise by "at least 8%", driven in particular by freight rates for shipping from Asia and by shortages of some plastics and carboards.

By 0915 GMT Danone shares were down 2.1%, having reversed early gains.

Rising costs and supply chain issues are further clouding the picture for European consumer staples in 2022, HSBC warned recently and Danone rival Nestle has also said it expects even higher input costs in 2022.

Danone on Tuesday posted a 3.8% rise in third-quarter underlying sales to 6.16 billion euros ($7.2 billion), slightly above the 3.6% expected by analysts.

This, however, marked a sequential slowdown from 6.6% sales growth in the second quarter and reflected a slower recovery in its waters business, where strong restrictions tied to COVID-19 measures weighed on sales in Indonesia.

In China, growth in Mizone water sales slowed to a a low single-digit percentage, contrasting with strong performances for Evian, Volvic and Font Vella waters in Europe.

Overall essential dairy and plant-based products delivered sales growth of 4.1% but the plant-based portfolio in North America was hit by supply and logistics disruptions.

(Reporting by Dominique Vidalon; Editing by Kim Coghill and David Goodman)

By Dominique Vidalon


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
DANONE -3.14% 54.33 Real-time Quote.1.06%
NESTLÉ S.A. -1.26% 120.5 Delayed Quote.15.58%
All news about DANONE
11/23DANONE : Receives a Sell rating from UBS
MD
11/17Danone to switch dairy factory to plant-based Alpro as diets shift
RE
11/16Danone to Sell Denmark Water-and-Beverage Business Aqua d'Or
DJ
11/16Royal Unibrew to Buy Mineral Water Producer Aqua d'Or from Danone
MT
11/16Danone announces the sale of Aqua d'Or
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11/15DANONE : EUR 700 000 000 - 0.52% - November 2030
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11/10DANONE : Alpro unveils major UK investment plan set to increase production yield whilst sl..
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Analyst Recommendations on DANONE
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Financials
Sales 2021 23 918 M 27 025 M 27 025 M
Net income 2021 1 950 M 2 203 M 2 203 M
Net Debt 2021 11 048 M 12 483 M 12 483 M
P/E ratio 2021 17,2x
Yield 2021 3,57%
Capitalization 35 361 M 40 014 M 39 954 M
EV / Sales 2021 1,94x
EV / Sales 2022 1,83x
Nbr of Employees 100 383
Free-Float 92,0%
Chart DANONE
Duration : Period :
Danone Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DANONE
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 26
Last Close Price 54,33 €
Average target price 61,52 €
Spread / Average Target 13,2%
EPS Revisions
Managers and Directors
Antoine Bernard de Saint-Affrique Chief Executive Officer
Juergen Esser Chief Financial, Technology & Data Officer
Gilles Schnepp Non-Executive Chairman
Domitille Doat-Le Bigot Chief Digital Officer
Jean-Michel Sévérino Lead Independent Director
Sector and Competitors
1st jan.Capi. (M$)
DANONE1.06%40 014
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THE KRAFT HEINZ COMPANY0.49%42 633
GENERAL MILLS, INC.6.73%38 013