Danone Restores 2020 Guidance; Reorganizes Structure
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 email@example.com
(END) Dow Jones Newswires
October 19, 2020 02:01 ET (06:01 GMT)
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