Danone group plans on scaling up investments for its brands and keep rotating asset allocation to boost revenue. The new CEO of Danone, Antoine de Saint-Affrique, conducts the new strategic plan.
In a statement, he said “Renew Danone" plan focuses on sustainable and competitive growth. The French food group expects to lower its operating profit margin over 12% in 2022, from 13.7% a year ago, and gain like-for-like sales growth of 3% to 5% compared to 3.4% in 2021.
The food-products corporation has targeted a profitable growth for 2023 and 2024. The goal is to get like-for-like sales growth between 3% and 5% and a recurring operating income greater than like-for-like net sales.
Expanding sales in its three business lines including dairy and plant-based products, baby food, and bottled water will be a challenging task for him.
Another challenge would be rising cost of production and unpredictability due to Russian attack to Ukraine; Danone has been pushed to suspend investments in Russia.
As yet, shares of the company have reduced 12% this year, which is negligibly better than their European sector (SX3P), with a loss of 13%.