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Danone to Step Up Revenue Growth As New Chief Comes In

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%.

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By Saha on March 8, 2022


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