Danone S.A.
ENXTPA-BN
Company Overview
Danone S.A. operates in the food and beverage industry in Europe, Noram, Latin America, the Asia Pacific, Africa, and the Middle East. The company operates through three segments: Essential Dairy & Plant-Based, Specialized Nutrition, and Waters. It produces and distributes yogurts; milk products; coffee creamers, drinks, and beverages; plant-based products; and ice creams, desserts, and nutritional powdered protein products under the Actimel, Activia, Alpro, Aptamil, Danette, Danio, Danonino, evian, Nutricia, Nutrilon, Volvic, as well as under the licensed brands, including International Delight, Dunkin' Donuts, and Bailey's. The company also offers specialized nutrition products for pregnant and breastfeeding mothers, infants, and young children under the Aptamil, Nutrilon, Gallia, Cow & Gate, Blédina, Bebelac, Olvarit, and Happy Family Organics brands. In addition, it provides tube feeding products under the Nutrison name; oral nutritional supplements under the Fortimel and NutriDrink names; and hypoallergenic products for children with allergies primarily under the Aptamil ProSyneo, Aptamil Pepti Syneo, and Neocate Syneo names. Further, the company offers water with natural fruit extracts, fruit juice, and vitamins under the evian, Volvic, Aqua, Mizone, Bonafont, Villavicencio, Villa del Sur, Hayat, Sirma, Fontvella, Lanjarón, Salus, Aqua d'Or, and Zywiec Zdroj brands. It distributes its products through retail chains and traditional market outlets; convenience stores; hospitals, clinics, and pharmacies; and e-commerce. The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009. Danone S.A. was incorporated in 1899 and is headquartered in Paris, France.
Name
Danone S.A.
CEO
Antoine Bernard de Saint-Affrique
Website
www.danone.com
Sector
Food Products
Year Founded
1899
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Bulls Say
Danone has seen a step-up in performance in recent years given more focus on execution, portfolio management, financial discipline, and business reinvestment in key areas.
Danone operates in categories with secular per capita consumption growth drivers driven by shifts in consumer preferences toward health and wellness categories.
The company’s leverage ratio has improved substantially, offering more balance sheet optionality to pursue bolt-on acquisitions to better align its portfolio with evolving consumer trends.
Bears Say
Danone's large exposure to product categories with high price elasticity for demand, such as yogurt, is suboptimal and leads to lower organic growth than peers.
Danone has a shallower product portfolio than its larger, more diversified competitors, which means brand reputational risk is more meaningful.
Danone has substantial exposure to the Chinese infant milk formula market exposes the company to potential earnings downsides from a shifting policy environment and falling birthrates.