Core Points - Danone has reached an agreement with NGOs ClientEarth, Surfrider Foundation Europe, and Zero Waste France to end legal proceedings regarding its vigilance plan on plastic [1][2] - The agreement includes a reinforced vigilance plan that details the consequences of plastic packaging use and outlines Danone's actions to reduce, reuse, recycle, and recover plastic [2] - Danone emphasizes the importance of open dialogue with NGOs to address complex challenges and encourages collective mobilization from all sectors to overcome systemic obstacles to a circular economy [3][4] Company Overview - Danone is a leading global food and beverage company focused on health-oriented categories, generating €27.6 billion in sales in 2023 and employing nearly 90,000 people [5] - The company operates in over 120 markets and has a diverse portfolio of international and local brands, including Actimel, Activia, and evian [5] - Danone aims for B CorpTM certification globally by 2025 and is included in various sustainability indexes, reflecting its commitment to social and environmental impact [5]

Company Overview - Danone's shares have decreased by almost 13% over the past five years due to rising inflation, a slowing European economy, and a challenging political environment in France [1]. Economic Context - The cumulative inflation rate in the region has reached nearly 25%, contributing to the decline in Danone's stock performance [1]. Investment Implications - The current market conditions may present potential investment opportunities for those looking to capitalize on undervalued assets, particularly in the consumer defensive sector where Danone operates [1].

Core Viewpoint - Lifeway Foods' Board of Directors rejected Danone North America's unsolicited acquisition proposal of $27.00 per share, citing that it significantly undervalues the company while expressing openness to a sale at a fair price [1][2]. Company Performance - Lifeway Foods has achieved 20 consecutive fiscal quarters of year-over-year topline growth [5]. - The company reported a total shareholder return of 788% over the past five years, outperforming high-growth food and beverage peers and the S&P 500 [5]. - Annual revenue increased from $94 million in 2019 to $160 million in 2023, marking a 71% increase and a 14% CAGR [5]. - Gross profit rose by 92% over the same five-year period, with an 18% CAGR, achieving $17 million in Operating Income and $22 million in Adjusted EBITDA in 2023 [5]. Growth Potential - Lifeway is experiencing double-digit growth, driven by consumer recognition of the gut microbiome's importance and the benefits of kefir [4]. - The company forecasts Adjusted EBITDA to grow from $22 million in 2023 to between $45 million and $50 million by 2027 [5]. - The Board believes Lifeway has reached an inflection point with strong momentum in core products and ongoing operational efficiency improvements [5]. Valuation Considerations - The Danone proposal of $27 per share implies a low EBITDA multiple of approximately 7.5x to 8.5x, not accounting for potential synergies and operational efficiencies [5].

Core Viewpoint - Danone successfully dismissed a lawsuit regarding its "carbon neutral" claim on Evian bottles, with a judge reversing a previous ruling that allowed the class action to proceed [1][2]. Group 1: Legal Proceedings - US District Judge Nelson Roman initially ruled that the term "carbon neutral" was ambiguous and that consumers might struggle to understand the labeling [2]. - After reconsideration, the judge concluded that reasonable consumers would check the back label for more information, which included a link to Evian's website explaining the carbon neutral claim [3][4]. - The judge stated that Danone's representations were technically true and that relevant disclosures were made available to consumers [5]. Group 2: Consumer Allegations - Consumers accused Danone of defrauding them by implying that Evian was environmentally friendly due to its "carbon neutral" label, while its manufacturing process still released carbon dioxide [1][5]. - The plaintiffs, who paid premium prices for Evian, equated "carbon neutral" with being environmentally friendly [5]. Group 3: Related Legal Context - This ruling followed a separate case where a Chicago federal judge dismissed a lawsuit against Danone for claiming Evian is "natural" despite containing microplastics [6]. - Danone's product portfolio includes other brands such as Dannon, Oikos, and Activia yogurt, with its headquarters located in Paris and North American operations in White Plains [6].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs, focusing on medium and small-cap markets, as well as blue-chip companies and broader investment stories [2][3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3][4] Group 2 - The company utilizes technology to enhance workflows and has a team with decades of expertise [3] - Proactive employs automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [4]

Financial Data and Key Metrics Changes - Danone reported a like-for-like sales growth of 4.2% for Q3 2024, indicating broad-based growth despite a soft consumer environment [4][6] - The volume mix contribution reached 3.6%, with resilient pricing at 0.7%, marking the fifth consecutive quarter of volume mix acceleration [5][7] - Net sales for Q3 amounted to approximately €6.8 billion, reflecting a 1.2% decline on a reported basis due to currency impacts and scope effects [7][8] Business Line Data and Key Metrics Changes - EDP (Essential Dairy Products) saw a 4.1% increase in like-for-like sales, with volume mix growth accelerating to 3.8% [6] - Specialized Nutrition experienced a 5.2% increase in like-for-like sales, with volume mix growth at 4.1% [6] - Waters category reported a 3.2% increase in like-for-like sales, with volume mix up by 2.3% [7] Market Data and Key Metrics Changes - North America delivered a strong performance with like-for-like sales growth of 5.8%, driven by a 4.9% increase in volume mix [10] - The China, North Asia, and Oceania region reported an 8% increase in like-for-like sales, with volume mix contribution exceeding 10% [12] - Europe achieved a 1.4% increase in like-for-like sales, with volume mix growth at 2.4% [8] Company Strategy and Development Direction - Danone's strategy focuses on competitive and quality growth, with an emphasis on health-oriented categories [5][16] - The company aims to maintain a science-based and consumer-centric approach, investing in category leadership to drive growth [16][17] - Danone is committed to addressing consumer needs and leveraging strong brand equities to support growth [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth in the China, North Asia, and Oceania region, citing strong performance across multiple categories [20] - In Europe, management noted that pricing would not be a major growth driver in the coming quarters, but volume dynamics are improving [22][35] - The company confirmed its guidance for 2024, expecting like-for-like sales growth between 3% and 5% and a moderate improvement in recurring operating margin [16][40] Other Important Information - The company is experiencing some inflation in material costs, particularly in milk prices, but is focused on maintaining a balance between volume, mix, and pricing [30][37] - Danone is investing in sustainability initiatives to enhance supply chain resilience and support regenerative agricultural practices [15] Q&A Session Summary Question: Sustainability of high sales growth in China, North Asia, and Oceania - Management expressed confidence in sustaining growth due to strong performance across multiple engines, including Medical Nutrition and Mizone [20] Question: European pricing dynamics and future expectations - Management acknowledged negative pricing in Europe but indicated that volume mix growth is improving, with plans to adjust pricing strategically [22][34] Question: U.S. EDP performance and outlook - Management reported strong growth in North America, particularly in coffee creamers and yogurt, with confidence in maintaining double-digit growth [28][29] Question: Guidance for the year and marketing investments - Management reiterated guidance for 2024, emphasizing the importance of investing in category leadership for sustainable growth [40] Question: Activia brand performance and gut health focus - Management confirmed that the repositioning of the Activia brand is yielding positive results, with a clear focus on gut health benefits [41]

| --- | --- | --- | |-------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q3 2024 SALES | | | | Juergen Esser | | | | Chief Financial Officer | | NATUR | CONTINUED STRONG MOMENTUM IN Q3 BROAD-BASED GROWTH ACROSS GEOGRAPHIES | --- | --- | --- | |------------------|-----------------------------|-------| | | | | | | NORTH AMERICA | +5.8% | | | EUROPE | +1.4% | | | CHINA, NORTH ASIA & OCEANIA | +8.0% | | +4.2% | LATIN AMERICA | +2.7% | | LFL sales ...

Core Insights - The company reported Q3 2024 sales of €6,826 million, reflecting a like-for-like (LFL) growth of +4.2%, driven by a +3.6% increase in volume/mix and a +0.7% increase in price [1][3][4] - The company confirmed its 2024 guidance, expecting LFL sales growth between +3% and +5% with a moderate improvement in recurring operating margin [1][8] Sales Performance - Sales by geographical zone showed varied performance: - Europe: €2,427 million, LFL growth of +1.4% - North America: €1,611 million, LFL growth of +5.8% - China, North Asia & Oceania: €967 million, LFL growth of +8.0% - Latin America: €706 million, LFL growth of +2.7% - Rest of the World: €1,115 million, LFL growth of +6.0% [1][4][5][6] - By category, EDP sales were €3,283 million with LFL growth of +4.1%, Specialized Nutrition at €2,189 million with +5.2%, and Waters at €1,354 million with +3.2% [1][4][6] Market Dynamics - The company experienced strong competitive momentum in North America, particularly in High Protein, Coffee Creations, and Waters, with double-digit growth in Coffee Creations [2][4] - In Europe, the EDP category showed progress, driven by strong performance from brands like YoPro, Actimel, and Alpro, despite adverse weather conditions affecting Waters [4][5] - In China, North Asia & Oceania, the company saw a significant increase in volume/mix, particularly in Specialized Nutrition and Medical Nutrition [5][6] Financial Adjustments - Reported sales decreased by -1.2% due to negative impacts from scope (-3.1%) and foreign exchange (-3.2%), while hyperinflation contributed positively to reported sales (+1.5%) [3][4][6] - The company applied IAS 29 in hyperinflationary countries, which affected reported data, leading to adjustments in sales figures [9][10] Major Developments - The company successfully issued a €700 million bond with a 7-year maturity and a 3.20% coupon, enhancing its financial flexibility [8]

MORTON GROVE, Ill., Sept. 24, 2024 /PRNewswire/ -- Lifeway Foods, Inc. (Nasdaq: LWAY) ("Lifeway" or "the Company"), a leading U.S. supplier of kefir and fermented probiotic products to support the microbiome, confirmed that it has received an unsolicited, non-binding proposal from Danone North America PBC ("Danone") to acquire all outstanding shares of common stock of Lifeway it does not already own for $25.00 per share in cash. According to the Schedule 13D amendment filed yesterday with the U.S. Securitie ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...