Danone Stock Price, News & Analysis

Danone has released its consolidated financial statements and the statutory auditors’ report for the fiscal year ended December 31, 2020. These documents are available for public access on Danone's official website, under the Investors / Regulated Information section. In 2020, Danone achieved sales of €23.6 billion. The company focuses on health-oriented products across three main segments: Essential Dairy & Plant-Based, Waters, and Specialized Nutrition. Danone aims for B Corp™ certification by 2025 and operates sustainably, highlighted by its 'One Planet. One Health' initiative.

On March 1, 2021, Danone's Board of Directors announced its unanimous support for Emmanuel Faber, who will separate the roles of Chairman and CEO. This decision comes as part of a governance review and will allow Faber to focus on his role as non-executive Chairman once a new CEO is appointed. The Board is also strengthening governance by appointing Gilles Schnepp as Vice-Chairman, and Jean-Michel Severino as Lead Independent Director. This restructuring aims to support Danone's 'Local First' adaptation plan, which is designed to enhance operational efficiency and growth.

Danone has released comprehensive information regarding their voting rights and shares as of February 28, 2021. The company's total number of shares stands at 686,629,600, with a total of 712,723,956 theoretical voting rights and 675,890,266 exercisable voting rights. This data complies with Article L. 233-8 II of the French Commercial Code and aims to keep stakeholders informed about the ownership structure and governance aspects of the company.

Danone has agreed to convert its 9.8% indirect stake in Mengniu, a leading Chinese dairy company, into a direct holding as part of a portfolio review. This conversion is the first step towards a potential divestiture of the stake, which has a book value of approximately €850 million and contributed €57 million to recurring income in 2019. The transaction requires regulatory approval, and Danone plans to return most proceeds to shareholders through a buyback program. The company remains committed to its operations in China.

Danone reported its FY 2020 results, showing a net sales decline of 1.5% like-for-like, totaling €23.62bn. Despite challenges from COVID-19, Essential Dairy and Plant-based (EDP) grew 3.4%, while Specialized Nutrition and Waters faced significant headwinds. Recurring EPS fell 13% to €3.34, although reported EPS rose 1.2% to €2.99. A €1bn savings plan is in place to support innovation and brand growth. The company anticipates recovery in Q2 2021, with FY recurring operating margin expected to align with 2020 levels. Additionally, Danone announced plans to acquire Follow Your Heart, enhancing its plant-based portfolio.

Danone disclosed the total number of voting rights and shares as of January 31, 2021. The company reported a total of 686,629,600 shares and 712,722,584 theoretical voting rights, with 675,888,894 exercisable voting rights. This information complies with French regulations, ensuring transparency in shareholding thresholds. The distinction between theoretical and exercisable voting rights is highlighted, where the former includes shares with suspended voting rights.

Danone reported Q3 2020 sales at €5,821 million, a decline of -9.3% year-over-year (YoY) and -2.5% on a like-for-like basis. The company aims for a 14% recurring operating margin and €1.8 billion in free cash flow for FY 2020. Key changes include the appointment of two new macro-regional CEOs and the launch of a portfolio review to enhance growth strategies. Despite challenges, sales in Essential Dairy and Plant-based segments grew by +3.7%. The company braces for uncertainty due to COVID-19's impact on consumer behavior and channel dynamics.

Danone has completed the sale of its 6.61% stake in Yakult Honsha Co. Ltd. for a total gross consideration of JPY58 billion (approximately €470 million). This strategic move is expected to enhance Danone's balance sheet significantly. The transaction settlement is set for October 9, 2020. This divestiture aligns with Danone's health-focused business strategy and commitment to sustainable growth across its diverse product portfolio, which includes essential dairy and plant-based products.

Danone announces the sale of its remaining 6.61% stake in Yakult Honsha Co. Ltd. through an accelerated bookbuilding process. This decision aligns with Danone's commitment to capital allocation discipline and strengthening its balance sheet. Despite this divestment, both companies reaffirm their long-term collaboration on probiotics, including existing partnerships in India and Vietnam. Danone's previous stake was 21.29%, most of which was sold in 2018. Further details regarding the sale's success will be disclosed shortly.