| --- | |---------------------------------| | | | Company Participants | | Mathilde Rodie - Head, IR | | Antoine de Saint-Affrique - CEO | | Juergen Esser - CFO | | Conference Call Participants | | Guillaume Delmas - UBS | | Jon Cox - Kepler | | Warren Ackerman - Barclays | | Pascal Boll - Stifel | | Bruno Monteyne - Bernstein | | Charlie Higgs - Redburn | | Celine Pannuti - JPMorgan | | David Hayes - Jefferies | | | I would now like to hand the conference over to your speaker today, Mathilde Rodie, Head of ...

Nestle S.A. (OTC:NSRGF, VTX:NESN) and Danone (OTCQX:DANOY) have both signalled food prices could climb more slowly over the coming year after such sharp increases have hit demand at both. Nestle reported organic sales growth of 7.2% for the year to December, below analysts’ expectations for 7.4%. Danone (OTCQX:DANOY) said like-for-like sales had climbed by 7% meanwhile, with price increases offsetting a 0.4% decline in volumes. Such price rises have become commonplace in shops in recent years, with the two ...

French food-manufacturing multinational Danone (OTCQX:DANOY) has announced a 7% reduction in the wholesale price of its powdered Aptamil baby formula products following an investigation by the UK's Competition and Markets Authority (CMA) into high formula prices. The CMA's scrutiny was triggered by significant price hikes in the baby formula sector, with Danone's prices having risen by 25% over two years. Data shared by the CMA showed that the cost of an 800g pack of Aptamil increased by 26% to £14.50 betwe ...

In today’s business landscape, consumers’ and investors’ growing focus on supply chain scrutiny is unrelenting but good news for eco-friendly stocks. This trend underscores a critical need for transparency, pushing companies to invest heavily in sustainable supply chain practices. Failing to do so risks alienating customers and investors, potentially eroding revenue streams. This shift toward sustainability and transparency isn’t just an environmental gesture; it’s a strategic move aligning with environment ...

ToplineGlobal shipping firms—including Denmark’s AP Møller-Maersk and Germany’s Hapag-Lloyd—have paused and rerouted operations in the Red Sea due to risks of attacks by Yemen’s rebel Houthi group, leading some companies to warn of shortages and delays as they seek alternative trading routes.Ikea and Danone have warned of shipping delays as they seek alternative trade routes. (Photo by ... [+] Warren Little/Getty Images)Getty Images Key FactsOver 100 container ships have been rerouted around the southern ti ...

Financial Data and Key Metrics Changes - The company reported a like-for-like sales growth of 6.2% compared to the previous year, with pricing contributing 6.6% and a slight decline in volume/mix of 0.3% [3][4][5] - The company raised its full-year guidance for like-for-like sales growth to between 6% and 7% [37] Business Line Data and Key Metrics Changes - All three categories—EDP, Specialized Nutrition, and Waters—grew above 5% in the third quarter [7] - EDP in Europe showed a significant improvement in volume/mix, down only 0.8% compared to a decline of around 3% in the first half of the year [8][10] - Mizone grew by 13.9% year-to-date, driven mainly by volume and mix, indicating a recovery in market share [13] Market Data and Key Metrics Changes - Europe delivered a growth of 5.1% in Q3, with pricing up 9.2% and volume/mix down 4.1% [19] - North America achieved a like-for-like growth of 3.9%, with pricing normalizing at 4.0% and volume/mix remaining broadly flat [24] - The China, North Asia, and Oceania zone registered 8.4% like-for-like sales growth, primarily driven by a 7.3% increase in volume/mix [27] Company Strategy and Development Direction - The company is focused on its "Renew Danone" initiatives, which are starting to yield positive results, particularly in improving volume and mix dynamics [6][15] - The strategy includes a significant portfolio transformation, with a focus on optimizing SKUs and enhancing brand performance [10][61] - The company is also investing in expanding production capacity, particularly in Medical Nutrition, to meet growing demand [14][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive contributions from volume and mix in Q4, indicating a turnaround in performance [6][16] - The company is navigating a transition in the Chinese market for Infant Milk Formula, focusing on maintaining control over inventory and pricing [28][54] - Management noted that inflation is decreasing, but pricing will remain positive, with a shift towards more targeted pricing strategies [46][48] Other Important Information - The company is experiencing a shift in consumer behavior, with increased preference for discount chains and e-commerce, which is reflected in its growth numbers [98][100] - The away-from-home channel is the fastest-growing segment, providing opportunities for premium product positioning [101] Q&A Session Summary Question: Pricing and Promotional Activities - Management indicated that pricing is normalizing, with increased promotional activities expected to return to pre-COVID levels by year-end [44][45] Question: Specialized Nutrition in Europe - Management acknowledged resilient performance in Specialized Nutrition, with ongoing investments to meet demand [49] Question: China Market Dynamics - Management highlighted strong market share gains in China, navigating the transition in the Infant Milk Formula category effectively [53][56] Question: EDP Performance - Management noted tangible progress in EDP, with a focus on execution and reinvestment to drive growth [73][74] Question: Waters Business Performance - Management reported challenges in the Waters segment due to poor weather but expects normalized growth in Q4 [71][72] Question: Overall Topline and Bottom-line Equation - Management confirmed moderate margin improvement while emphasizing reinvestment into the business for future growth [104]

Financial Data and Key Metrics Changes - The company reported a like-for-like revenue increase of 8.4% for the first half of 2023, driven by a pricing increase of 9.4% and a resilient volume mix decline of 1.1% [6][8] - Recurring operating margin improved by 14 basis points year-over-year, while cash flow reached EUR1.1 billion, an increase of EUR400 million compared to the previous year [8][53] - The recurring EPS for the first half of 2023 was EUR1.76, reflecting a 7.6% increase year-over-year, while reported EPS stood at EUR1.7, up 48% due to a decrease in non-recurring costs [52][53] Performance by Business Lines - The EDP category achieved a net sales growth of 6.2%, with strong double-digit growth in High Protein, Everyday Nutrition, and Coffee Creation platforms [25] - Specialized Nutrition sustained competitive growth at 4.9%, with market share gains in regions like China and Southeast Asia [25] - The Waters category delivered a growth of 9.6%, driven by strong performance from Evian and Mizone brands [27] Performance by Markets - Europe experienced a solid growth of 6.5% in Q2, with pricing up 11.7% and volume mix down 5.1% [31] - North America reported a 5% like-for-like sales growth, with notable contributions from the Coffee Creations business and solid performance in the Yogurt segment [34][36] - Latin America registered a 10.8% like-for-like sales growth in Q2, with all countries contributing to the performance [42] Company Strategy and Industry Competition - The company is focused on restoring its value creation model through consistent delivery and strategic investments, particularly in A&P and product superiority [18][20] - The Renew Danone framework emphasizes long-term value creation rather than short-term tactical wins, with a commitment to reinvest in brands and assets [18][59] - The company is actively working on SKU rationalization to streamline its portfolio and improve operational efficiency [85] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatile environment but expressed confidence in the sequential improvement of volumes and operational leverage [55] - The company reiterated its full-year guidance for like-for-like net sales growth between 4% and 6%, expecting to be at the upper range of this guidance [56] - Management emphasized the importance of maintaining a balanced growth model while navigating inflationary pressures [80][81] Other Important Information - The EDP business in Russia has been placed under temporary external administration, leading to a cash impairment of around EUR0.2 billion [54] - The company is making substantial progress in its transformation efforts, particularly in Europe, with expectations of improved volume dynamics moving forward [33][54] Q&A Session Summary Question: EDP performance in the U.S. and Europe - Management noted a good performance in the U.S. EDP, particularly with Oikos and Activia, while addressing a slowdown in the Danimals brand due to price elasticity [63] - In Europe, the company is leveraging successful strategies from Spain to improve performance in other countries [64][65] Question: Growth in China and Specialized Nutrition margins - Specialized Nutrition in China saw nearly 7% growth, with strong contributions from Infant Milk Formula [68] - Margins in Specialized Nutrition were down due to investments in innovation and the timing of price increases in Europe [71] Question: Pricing adjustments and strategic roadmap - Management indicated that while pricing effects are expected to normalize, inflation will still impact costs, necessitating a sophisticated pricing strategy [80] - The company is focused on consistent delivery before moving to the next phase of its strategic roadmap [77] Question: SKU rationalization and capital allocation - SKU rationalization is progressing, with expectations to normalize by the end of the year, while maintaining a disciplined approach to portfolio management [85] - Free cash flow reached EUR1.1 billion, driven by disciplined capital allocation and working capital management [87]

Financial Data and Key Metrics Changes - The company reported a strong start to Q1 2023 with a like-for-like net sales growth of 10.5%, driven by contributions from all geographies [3][12] - Reported growth reached 11.6% for the quarter, with quarterly net sales amounting to €6.9 billion, up from €6.2 billion in Q1 2022 [12] - Price increased by 10.3%, while volume/mix was up by 0.2% [11] Performance by Business Lines - The EDP platform achieved a net sales growth of 9.3%, with double-digit growth in high protein and coffee creation platforms [4] - Specialized Nutrition category sustained strong growth momentum at 12%, with competitive growth across most geographies [5] - Waters category delivered broad-based growth of 12%, driven by strong performance of Evian and Volvic brands in Europe and Mizone brand in China [5] Performance by Market - Europe experienced solid growth of 6.2%, with price up by 10.2% and volume/mix down by 4% [13] - North America posted strong like-for-like growth of 11.8%, driven by price increase of 11% and positive volume/mix of 0.8% [16] - China, North Asia, and Oceania zone achieved a like-for-like growth of 16%, with strong volume/mix growth of 14.3% [18] - Latin America registered sales growth of 12.6% on a like-for-like basis, with price up by 12.7% [21] - The Rest of the World zone posted sales growth of 11.7% on a like-for-like basis, with price up by 12.9% [24] Company Strategy and Industry Competition - The company is focused on executing its Renew Danone agenda, emphasizing higher investments and agile resource allocation to drive sustainable value creation [6][10] - Progress is being made in transforming the EDP portfolio in Europe, with expectations for improved volume dynamics in the second semester [8] - The company is investing in R&D and innovation capabilities, including acquisitions and minority investments in food technologies [9][10] Management's Comments on Operating Environment and Future Outlook - Management upgraded the like-for-like guidance for 2023 to net sales growth between 4% and 6%, while confirming guidance for a moderate increase in recurring operating margin [26] - The company anticipates some normalization in Q2 due to calendar effects and is focused on transforming the EDP portfolio [34] - Management noted that pricing dynamics in Europe are expected to normalize gradually, with continued investments in brand initiatives [50][53] Other Important Information - The company is experiencing commodity inflation, particularly in labor and liquid milk, but expects inflation to decrease as the year progresses [74] - The company is redeeming a €750 million hybrid bond, which is part of a disciplined deleverage approach [92] Q&A Session Summary Question: Impact of Ramadan and IMF refill on Q1 performance - Management acknowledged that Q1 benefited from the Ramadan effect and inventory normalization, but expects normalization in Q2 [28][30] Question: Guidance for the rest of the year - Management confirmed that the guidance remains consistent with mid-term expectations, despite a strong start in Q1 [32][34] Question: Market share performance - Management indicated consistent market share gains in North America and China, while EDP Europe is undergoing transformation [40][42] Question: Pricing dynamics in Europe - Management noted that pricing increases were implemented without significant disruptions, and they are planning for promotional activities to support volume recovery [51][53] Question: Plant-based growth specifics - Management reported mid-single-digit growth in plant-based categories, with a focus on profitable growth models [64] Question: Medical nutrition growth specifics - Management confirmed strong performance in both adult and pediatric nutrition segments, with a focus on superior product offerings [67] Question: SKU rationalization impact - Management stated that SKU rationalization is expected to be margin accretive and will continue to refine the portfolio [79][80]

FULL-YEAR 2022 RESULTS February 22, 2023 DISCLAIMER - This presentation contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward-looking statements by forward-looking words, such as "estimate", "expect", "anticipate", "project", "plan", "intend", "objective", "believe", "forecast", "guidance", "outlook", "foresee", "likely", "may", "should", "goal", "target", "might", "will", "could", "predict", "continue", "convinced" and "confident," the negative or plur ...

Danone S.A. (OTCQX:DANOY) Q4 2022 Earnings Conference Call February 22, 2023 2:30 AM ET Company Participants Mathilde Rodie - Head of IR Antoine de Saint-Affrique - CEO Juergen Esser - CFO Conference Call Participants Jon Cox - Kepler Chevreux Guillaume Delmas - UBS John Ennis - Goldman Sachs Bruno Monteyne - Bernstein Patrick Folan - Barclays Tom Sykes - Deutsche Bank David Hayes - Societe Generale Celine Pannuti - JPMorgan Operator Good day, and thank you for standing by. Welcome to Danone 2022 Annual Res ...