Corporate Profiles - 2023 - 70

COMPANY overview
Danone SA
Sustainability, leadership restructuring
among top goals for Danone
D
anone SA, Paris, is changing its dairy and
plant-based businesses with an eye toward
landing long-term growth opportunities.
The company employed two strategies to further
the success of its Essential Dairy and Plant-based
(EDP) business unit, with one being expanding
plant-based yogurt alternatives into other eating
occasions. The second is to reduce the number of
stock-keeping units (SKUs) in Europe.
" In plant-based, we are broadening our yogurt
offering to cover more segments and occasions
from indulgent to functional, " said Antoine
Bernard de Saint-Affrique, chief executive officer,
in a Feb. 22 earnings call. " Combining Danone's
First-half sales for the period ended June 30
rose 6% to €14.2 billion ($15.8 billion) from
€13.3 billion the year before. Pricing contributed
9.4% to the sales growth while volume/mix was
down 1.1%.
Chief executive officer -
Antoine Bernard de Saint-Affrique
historical know-how in fermentation and manufacturing
with our plant-based expertise provides
us with the capability to lead the plant-based yogurt
market. "
Mr. de Saint-Affrique also said the company is
engaged in the transformation and the repositioning
of its EDP portfolio in Europe.
" We started this journey in the back end of '22, "
he said. " This work is not about short-term and
easy fixes but about making sure EDP Europe gets
back to where it belongs, becoming, again, a growing
competitive and innovative business. "
Danone's first-half results saw the company's net
income rise to €1.13 billion ($1.26 billion), equal to
€1.76 ($1.89) per share on the common stock, up
from €1.05 billion, or €1.63 per share, the year before.
70 \ October 2023
In North America, Danone's sales rose 7% to
€3.14 billion ($3.5 billion) during the first half of
the year. Brands contributing to the growth included
Coffee Creations, International Delight, Stok,
Oikos and Evian.
The strategies implemented have not yet had a
meaningful impact on the company's stock price.
Shares of Danone have risen approximately 6%,
from €50.10 per share at the market close on Sept.
15, 2022, to €53.20 at the close on Sept. 13.
Danone also has focused on restructuring its
leadership this year. The company created threegroup
deputy chief executive officer positions to aid
its go-to-market strategy.
The company hired Véronique Penchienati-Bosetta
as group deputy CEO, CEO International and
executive vice president of specialized nutrition,
waters, global marketing and digital divisions.
Shane Grant was named group deputy CEO, CEO
Americas and executive vice president of dairy,
plant-based and global sales. Juergen Esseris has
the role of group deputy CEO of finance, technology
and data.
The group deputy CEOs are responsible for
driving the company's four-pillar " renew Danone "
plan, which includes improving the company's
competitiveness in core categories and geographies;
undergoing selective expansion efforts;
seeking future growth avenues; and actively rotating
Danone's portfolio.
In January, the company said it planned to divest
its organic dairy business in the United States,
which includes such brands as Horizon Organic and
Wallaby. Mr. Saint-Affrique said the brands fall outside
the company's priority growth areas.
In July, Russian authorities took control of the
company's assets in that country. Danone had announced
in October 2022 that it was transferring
control of its business in Russia to an unnamed
entity. Company executives said the process was
ongoing when Russian authorities stepped in. CP
Danone SA net income
in millions of euros
2022
€2,205
2021
€2,165
2020
€2,189
Source: Danone SA
Danone SA net sales
in millions of euros
2022
€27,661
2021
€24,281
2020
€23,620
Source: Danone SA
Danone SA share price
€61
Sept. 15, 2023 = €53.79
€55
€49
HIGH =
May 16, 2023 = €59.19
LOW =
Oct. 7, 2022 = €45.81
Source: Euronext Paris
€43
Sept. Nov.
2022
DANONE SA
Jan.
2023
March May
July
Sept.
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Corporate Profiles - 2023

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