DANOY - Danone: Restructuring In Progress

2024-04-22 05:34:12 ET

Summary

• Divestitures in Q1-2024 indicate that management continues to execute its “Renew Danone” plan, with a primary focus still on internal reorganization.
• Net income has been battered by extraordinary items and equity has been shrinking since 2021 due to excessive dividend paid out.
• In my view, Danone could become a success story – and a buy – once the company produces more convincing evidence pointing at a successful turnaround.

Introduction and Overview of Q1 Key Insights

Danone (DANOY) is a French food multinational that produces and markets consumer staples with a focus on dairy products, infant formulae (combined ~80%), and bottled water (~20%). Some of its most renown brands are Actimel, Alpro, and Evian....

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