By Giulia Petroni 
 

Danone SA said Monday that sales fell in the third quarter and restored guidance for the full year, while laying out a reorganization of its structure.

The French food company said quarterly sales for the period came to 5.82 billion euros ($6.82 billion) compared with EUR6.42 billion for the previous-year period. An analysts' consensus compiled by FactSet had forecast the figure at EUR5.95 billion.

On a like-for-like basis, sales fell 2.5%.

Looking at the full year, Danone said it targets recurring operating margin at 14% and EUR1.8 billion in free cash flow. The company said it is reviewing its portfolio and assets--in particular the Argentine platform and Vega brand--in order to deliver a 3% to 5% profitable growth in the mid-term.

The company said Chief Financial Officer Cecile Cabanis will leave the company in February 2021, to be succeeded by Juergen Esser, currently CFO of the waters and Africa divisions. Mr. Esser will report directly to Chief Executive Emmanuel Faber and be part of the executive committee.

As part of a major reshape of its organization, Danone said it has appointed Veronique Penchienati-Bosetta and Shane Grant as CEOs of Danone International and Danone North America, respectively. The company also named Henri Bruxelles for the newly created function of chief operating officer for end-to-end design to delivery.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

October 19, 2020 02:01 ET (06:01 GMT)

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