DANONE: Resilience confirmed; Set to emerge stronger
2020 First-Half
ResultsPress release – Paris, July 30, 2020
Resilience confirmed Set
to emerge stronger
- Net sales of €12,189m in the first semester,
down by -1.1% on a like-for-like (LFL) basis and -3.6% on a
reported basis
- Solid momentum in first quarter; second quarter hit by global
lockdown with sales down -5.7% on a LFL basis
- Polarized performance across categories and channels:
resilience in Essential Dairy and Plant-based and Specialized
Nutrition growing at +3% LFL in first semester; Waters down -19%
LFL in line with previous update
- Recurring operating margin at 14.0% vs. 14.7%
in the prior year
- Continued focus on efficiency allowing to partly offset effect
from COVID-19 while sustaining brand investment
- Reported EPS broadly stable at €1.55 (-2% vs.
prior year) and recurring EPS down -10% at
€1.68
- Tight focus on cash management enabling free cash flow
delivery at €929 million
|
Emmanuel
Faber: Chairman and Chief Executive Officer statement
“Our second quarter began as the scale of the COVID-19
pandemic started to take hold globally, with roughly half of the
world’s population living under lockdown. I want to thank everyone
at Danone for their intense dedication over these last few months.
Their continued focus on execution excellence and the culture of
greater efficiency, agility and local proximity that had been
infused in the past four years enabled us to navigate the enormous
challenges and disruptions that were happening in our environment
in a responsible manner while driving our brands’ preference and
protecting our cash in what has been one of the toughest quarters
in Danone’s history. While it remains difficult to predict exactly
how consumer habits and macroeconomic conditions will evolve for
the balance of this year, in particular given the uncertainty
around the easing of lockdown measures, we’re confident that Q2 was
the most challenging quarter of the year and the back half of the
year will show a sequential improvement in growth. As we adapt to
the new COVID world, our compass remains to deliver superior
sustainable profitable growth and to lead the way in creating and
sharing sustainable value in a world where concerns about society,
health and the planet are core to our business.”
2020 Half-Year Key
Figures |
in millions of euros except if stated otherwise |
H1 2019 |
H1 2020 |
Reported Change |
Like-for-like(LFL) |
Sales |
12,648 |
12,189 |
-3.6% |
-1.1% |
Recurring operating income |
1,858 |
1,702 |
-8.4% |
-8.7% |
Recurring operating margin |
14.7% |
14.0% |
-72 bps |
-120 bps |
Non-recurring operating income and expenses |
(314) |
(123) |
+192 |
|
Operating
income |
1,543 |
1,580 |
+2.3% |
|
Operating margin |
12.2% |
13.0% |
+76 bps |
|
Recurring net income – Group share |
1,221 |
1,100 |
-9.9% |
|
Non-recurring net income – Group share |
(186) |
(86) |
+101 |
|
Net income – Group share |
1,035 |
1,015 |
-1.9% |
|
Recurring EPS (€) |
1.87 |
1.68 |
-10.1% |
|
EPS (€) |
1.58 |
1.55 |
-2.2% |
|
Free cash flow |
1,083 |
929 |
-14.3% |
|
Cash flow from operating activities |
1,435 |
1,305 |
-9.1% |
|
All references in this document to Like-for-like
(LFL) changes, Recurring operating income and margin, Recurring net
income, Recurring income tax rate, Recurring EPS, Free cash-flow,
net financial debt, correspond to financial indicators not defined
in IFRS. Their definitions, as well as their reconciliation with
financial statements, are listed on pages 5 to 8.
I. 2020 HALF
YEAR RESULTS
Second quarter and half-year
sales
In the first semester of 2020,
consolidated sales stood at €12.2 bn, down -1.1% on a like-for-like
basis, with stable volumes (+0.1%) and -1.3% value reflecting the
effect of change in channel and format mix in Waters. Reported
sales were down -3.6%, including a negative scope effect (-0.8%),
mainly resulting from the deconsolidation from April 1st, 2019 of
Earthbound Farm, a negative impact from exchange rates (-2.1%)
mainly driven by currency devaluation in Latin America and Russia
as well as a +0.4% organic contribution of Argentina to growth.
After a strong momentum in the first quarter
with sales up +3.7%, sales decreased by -5.7% in the second
quarter on a like-for-like basis, hit by the expansion of
the COVID-19 pandemic into new regions most notably Latin America,
the reversal of pantry loading behaviors observed in the first
quarter and the full impact of out-of-home closure in the
quarter.
€ millionexcept % |
Q22019 |
Q2 2020 |
Reported change |
LFL Sales Growth |
Volume Growth |
H12019 |
H12020 |
Reported change |
LFL Sales Growth |
Volume Growth |
BY REPORTING ENTITY |
|
|
|
|
|
|
|
|
|
|
EDP |
3,283 |
3,238 |
-1.4% |
+1.6% |
+1.8% |
6,600 |
6,599 |
-0.0% |
+3.1% |
+2.3% |
Specialized Nutrition |
1,866 |
1,792 |
-4.0% |
-2.2% |
-3.7% |
3,696 |
3,739 |
+1.2% |
+2.7% |
+0.8% |
Waters |
1,346 |
925 |
-31.3% |
-28.0% |
-12.0% |
2,352 |
1,851 |
-21.3% |
-19.1% |
-6.8% |
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
|
|
|
Europe & Noram1 |
3,471 |
3,352 |
-3.4% |
-3.5% |
-1.1% |
6,851 |
6,822 |
-0.4% |
+0.5% |
+2.1% |
Rest of the World |
3,025 |
2,602 |
-14.0% |
-8.2% |
-3.9% |
5,797 |
5,368 |
-7.4% |
-3.1% |
-1.7% |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
6,496 |
5,954 |
-8.3% |
-5.7% |
-2.6% |
12,648 |
12,189 |
-3.6% |
-1.1% |
+0.1% |
1North America (Noram): United States and
Canada
The portfolio showed marked variations
across categories and channels in the first semester.
Essential Dairy and Plant-based and Specialized Nutrition,
representing about 80% of the company’s revenues, posted a solid
growth, while sales in Waters were down -19%. Excluding Waters,
company’s like-for-like sales growth was +3.0% in H1 and +0.2% in
Q2. Performance by channel was also very contrasted, with
e-commerce growing at +30% in H1 while sales in out-of-home
channels, representing 11% of 2019 sales globally, declined -30% on
a like-for-like basis.
In terms of regional dynamics,
Europe and North America posted stable sales (+0.5%) in the first
semester, down by -3.5% in the second quarter after a strong start
of the year. North America, the region where the company has the
largest footprint, continued to see solid momentum in Q2 while
sales in Europe declined, mirroring the reversal of pantry loading
that occurred in the month of March and lower sales normally
consumed away from home in Waters. In Rest of the World, while
trends in CIS and China were broadly in line with the previous
quarter, revenues declined severely in other key regions as the
impact of the COVID-19 pandemic become felt notably in Latin
America, Indonesia and Africa.
Recurring Operating Margin
Danone’s recurring operating income stood at
€1.7bn in the first semester. Recurring operating margin stood at
14.0%, down 72 basis points. The change includes a
negative 93bps effect from incremental costs directly related to
COVID-19 incurred in the semester to keep our employees safe and
ensure business continuity. These costs amount to €114 million and
include around €40 million of sanitary costs (acquisition of masks,
gloves, sanitizer and tests), around €35 million of donations and
specific bonuses paid to the 60,000 employees that continued
working on frontline during the pandemic lockdowns, and around €40
million of extra-logistic costs related to warehousing adaptation,
and higher freight and transportation costs. Excluding these costs,
recurring operating margin would have increased to 14.9% despite a
reduced operating leverage and a mix effect of -80bps incurred in
the period mostly from Waters. To mitigate these headwinds, the
company increased its efforts on efficiency and cost discipline.
Brand investments were reduced only marginally (-23 bps in the
semester) to sustain the competitiveness of brands. Reported margin
also reflects a positive effect from change in scope (+20bps) and
currencies (+33 bps), and a slightly negative effect of -6bps
reflecting Argentina’s impact on margin.
Recurring operating margin is expected to remain
impacted in the second half by Covid-19-related extra-costs,
negative mix, as well as increased investments in the
competitiveness of the business, as the company is leveraging the
crisis as a catalyst to accelerate the business transformation that
was already underway to emerge stronger.
Recurring operating profit
(€m) and margin (%) |
H1 2019 |
H1 2020 |
Change |
€m |
Margin (%) |
€m |
Margin (%) |
Reported |
Like-for-like |
BY REPORTING ENTITY |
|
|
|
|
|
|
EDP |
621 |
9.4% |
598 |
9.1% |
-35
bps |
-83 bps |
Specialized Nutrition |
934 |
25.3% |
987 |
26.4% |
+113
bps |
+54 bps |
Waters |
303 |
12.9% |
117 |
6.3% |
-655 bps |
-638 bps |
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
Europe & Noram2 |
942 |
13.8% |
880 |
12.9% |
-85
bps |
-110 bps |
Rest of the World |
915 |
15.8% |
822 |
15.3% |
-48 bps |
-126 bps |
|
|
|
|
|
|
|
Total |
1,858 |
14.7% |
1,702 |
14.0% |
-72 bps |
-120 bps |
2North America (Noram): United States and Canada
Performance by reporting entity
§ ESSENTIAL DAIRY AND PLANT-BASED
(EDP)
Essential Dairy & Plant-based
(EDP) posted net sales growth of +3.1% in H1 2020 on a
like-for-like basis, and margin remained slightly over 9%.After a
strong Q1 performance, EDP maintained revenue momentum into the
second quarter with net sales up by +1.6% on a like-for-like basis,
including a +1.8% increase in volume, and a -0.2% decline in value.
Europe and North America posted solid growth, demonstrating the
continued dailiness resilience of the Essential Dairy business,
growing at low-single-digit levels, and the increased penetration
of Plant-Based which continued to grow at double-digit rate in Q2.
In the rest of the world, sales trend in CIS was broadly similar to
Q1 while in Latin America and Africa, sales declined at high-single
digit rate as lockdown restrictions implemented in Q2 affected
sales in traditional proximity stores - the biggest channel in
those regions.
§ SPECIALIZED NUTRITION
Specialized Nutrition posted
net sales growth of +2.7% in H1 2020 on a like-for-like basis.
Margin improved by +113bps to reach a record level of 26.4%
benefiting from synergies from the Early Life and Medical Nutrition
integration.In the second quarter, sales were down -2.2% on a
like-for-like basis. The average price / kg continued to increase
by +1.5% thanks to further premiumization. Volume declined by -3.7%
primarily driven by Europe with sales down around -10%, as a
significant destocking occurred after an exceptional month of March
that saw sales increase more than +30%. Total sales in China were
broadly flat, with good performance of adult nutrition business and
sales in infant nutrition still affected by Hong-Kong border
closure and continued travel restrictions. The company continues
its expansion in the country in the ultra-premium segment with the
introduction of a number of innovations over the quarter, notably
the range Aptamil Essensis. Elsewhere the business continued to
benefit from strong momentum, notably in South East Asia.
§ WATERS
Waters sales declined -19.1% in
H1 2020 on a like-for-like basis. Margin decreased to 6.3%, hit by
reduced operating leverage, negative channel and format mix, and
additional costs directly linked to COVID-19.In the second quarter,
net sales were down -28.0% on a like-for-like basis, with a
decrease in volume of -12.0% and -16.1% in value. Sales
deteriorated across geographies as the pandemic expanded into
regions that had been relatively unaffected prior to Q2, with the
exception of China where sales under Mizone brand improved from
-40% level reported in Q1 yet still significantly negative,
impacted by consumers footfall still below pre-COVID levels. Jugs
and large formats of plain waters were up at +12% globally in Q2
while small formats and notably aquadrinks were severely hit by the
lack of consumers out of their homes. Overall, out-of-home
channels, which usually account for around 45% of Waters’ sales in
the quarter, were down at almost 50%, accounting for most of the
overall revenue decline.
Net income and Earnings per
share
Other operating income and
expense decreased to -€123 million from -€314 million in
the prior year, which embedded an exceptional loss from the sale of
Earthbound Farm. They mostly include expenses related to some
reorganization costs in Essential Dairy and Plant-Based and
Specialized Nutrition businesses. As a result, the reported
operating margin was up +76 bps from 12.2% to 13.0%.
Net financial costs were down
by €12 million to €170 million, given the successful bond issues
realized in the semester at attractive rates and favorable currency
effects. Recurring income tax rate remained at
27.0%, in line with the prior year. Recurring net income
from associates decreased from €51 million to €21 million,
reflecting the deteriorated performance of Mengniu and Yashili in
China. Recurring minority interests were down by
€13 million versus H1 2019, reflecting a deterioration of
performance across minorities, notably Aqua in Indonesia.
As a result, recurring EPS
stood at €1.68, down -10% vs. last year but reported
EPS decreased more slightly (-2% to €1.55) as
non-recurring items decreased by around €100 million in total, from
-€186 million to -€86 million.
|
H1 2019 |
H1 2020 |
|
in millions of
euros except if stated otherwise |
Recurring |
Non-recurring |
Total |
|
Recurring |
Non-recurring |
Total |
|
Recurring operating income |
1,858 |
|
1,858 |
|
1,702 |
|
1,702 |
|
Other
operating income and expense |
|
(314) |
(314) |
|
|
(123) |
(123) |
|
Operating income |
1,858 |
(314) |
1,543 |
|
1,702 |
(123) |
1,580 |
|
Cost of net
debt |
(118) |
|
(118) |
|
(110) |
|
(110) |
|
Other financial income and expense |
(65) |
0 |
(65) |
|
(60) |
0 |
(60) |
|
Income
before taxes |
1,675 |
(314) |
1,361 |
|
1,532 |
(123) |
1,410 |
|
Income
tax |
(453) |
126 |
(327) |
|
(414) |
36 |
(378) |
|
Effective tax rate |
27.0% |
|
24.0% |
|
27.0% |
|
26.8% |
|
Net
income from fully consolidated companies |
1,222 |
(188) |
1,034 |
|
1,118 |
(86) |
1,032 |
|
Net income
from associates |
51 |
1 |
51 |
|
21 |
0 |
22 |
|
Net
income |
1,273 |
(187) |
1,085 |
|
1,139 |
(86) |
1,053 |
|
• Group
share |
1,221 |
(186) |
1,035 |
|
1,100 |
(86) |
1,015 |
|
• Non-controlling interests |
52 |
(1) |
51 |
|
39 |
(0) |
39 |
|
EPS (€) |
1.87 |
|
1.58 |
|
1.68 |
|
1.55 |
|
Cash flow and Debt
Free cash flow stood at €929
million in the first semester, down -14.3% year-on-year, reflecting
contracting operating performance, deteriorating working capital
due to inventory increase and financing assistance to partners, as
well as higher capex level at 3.1% of net sales vs 2.8% last
year.
As of June 30th 2020, Danone’s net debt
stood at €13.5 bn, up €674 million from December 31th,
2019, integrating the liability related to the payment of 2019
dividend to Danone’s shareholders amounting to €1.4 bn.
II.
OUTLOOK
Looking into the second-half, business remains
difficult to predict as the environment is still volatile and much
uncertainty remains about the severity, the duration and the
implications of the pandemic as to how exactly macroeconomic
conditions, lockdown easing and consumer habits will evolve for the
rest of this year. Danone is therefore not in a position to provide
an updated financial guidance for fiscal year 2020 at this
time.
III. MAJOR
FINANCIAL TRANSACTIONS AND DEVELOPMENTS OVER THE
PERIOD
- May 5, 2020: Danone announced that Shane Grant
will join Danone as Executive Vice President and CEO Danone North
America, with effect from May 11, 2020, to lead the EDP business in
that market.
- June 3, 2020: Danone launched a new €800
million bond issue. Following a previous €800 million successful
issuance on March 11th, it enables Danone to further take advantage
of market windows to enhance its funding flexibility, extend the
maturity of its debt and optimize its cost. The issue, realized
under Danone’s Euro Medium Term Note (EMTN) program, consists in a
9-year eurodenominated bond offering a coupon of 0.395%.
- June 26, 2020: Following its 2020 Annual
General Meeting, Danone became the first listed company to adopt
the “Entreprise à Mission” model, with the support of more than 99%
of its shareholders. The shareholders’ meeting has approved all
other resolutions submitted to a vote, including the dividend for
the 2019 fiscal year set at €2.10 per share in line with original
Board’s recommendation.
- July 16, 2020: Danone announced a series of
investments to strengthen the local market capabilities, support
and commitment of its Specialized Nutrition business in China.
Totalling around 100 million euros (RMB 790 million), these
investments include the opening of an open-science research center
based in Shanghai, the acquisition of local infant milk formula
capabilities, and the expansion of capacity to further develop
offerings in FSMP (Food for Special Medical Purposes). Danone also
announced that its Early Life Nutrition business unit in the
country has achieved B CorpTM certification, meaning that Danone
becomes the biggest B Corp™ in Asia. This brings the number of
subsidiaries being B Corp Certified to date to 24, representing
around 45% of Danone’s global sales.
IV. OTHER
INFORMATION
- The condensed interim consolidated financial statements for the
first semester 2020 were reviewed by the Board of Directors at its
meeting on July 29, 2020. A limited review has been carried out by
the statutory auditors of Danone on the condensed interim
consolidated financial statements.
- The 2020 half-year financial report is available on Danone’s
website (www.danone.com).
V. IFRS
STANDARDS AND FINANCIAL INDICATORS NOT DEFINED IN IFRS
IAS29 impact on reported
data
Danone has been applying IAS 29 in Argentina
from July 1st, 2018. Adoption of IAS 29 in this hyperinflationary
country requires its non-monetary assets and liabilities and its
income statement to be restated to reflect the changes in the
general pricing power of its functional currency, leading to a gain
or loss on the net monetary position included in the net income.
Moreover, its financial statements are converted into euro using
the closing exchange rate of the relevant period.
IAS29 impact on reported data €
million except % |
Q2 2020 |
|
H1 2020 |
|
Sales |
-1.5 |
|
-10 |
|
Sales growth (%) |
-0.0% |
|
-0.1% |
|
Recurring Operating Income |
|
|
-11 |
|
Recurring Net Income – Group share |
|
|
-14 |
|
Breakdown by quarter of first-half 2020 sales
after application of IAS 29H1 2020 sales correspond to the addition
of:
- Q2 2020 reported sales;
- Q1 2020 sales resulting from the application of IAS29 until
June 30, 2020 to sales of Argentinian entities (application of the
inflation rate until June 30, 2020 and translation into euros using
June 30, 2020 closing rate) and provided in the table below for
information (unaudited data).
€ million |
Q1 2020(1) |
Q2 2020 |
H1 2020 |
EDP |
3,361 |
3,238 |
6,599 |
Specialized Nutrition |
1,948 |
1,792 |
3,739 |
Waters |
927 |
925 |
1,851 |
|
|
|
|
Total |
6,235 |
5,954 |
12,189 |
(1)Results from the application of IAS29 until
June 30, 2020 to Q1 sales of Argentinian entities.
Financial
indicators not defined in IFRS
Due to rounding, the sum of values presented may
differ from totals as reported. Such differences are not
material.
Like-for-like changes in sales,
recurring operating income and recurring operating margin reflect
Danone's organic performance and essentially exclude the impact
of:
- changes in consolidation scope, with indicators related to a
given fiscal year calculated on the basis of previous-year scope
and, since January 1st, 2019, previous-year and current-year scope
excluding Argentinian entities;
- changes in applicable accounting principles;
- changes in exchange rates with both previous-year and
current-year indicators calculated using the same exchange rates
(the exchange rate used is a projected annual rate determined by
Danone for the current year and applied to both previous and
current years).
Bridge
from reported data to like-for-like data
(€ million except %) |
H1 2019 |
Impact of changesin scope of
consolidation |
Impact of changes in exchange rates and others, including
IAS29 |
Argentina organic contribution |
Like-for-like growth |
H1 2020 |
|
|
|
|
|
|
|
Sales |
12,648 |
(0.8%) |
(2.1%) |
+0.4% |
(1.1%) |
12,189 |
Recurring operating margin |
14.7% |
+20 bps |
+33 bps |
-6 bps |
-120 bps |
14.0% |
Danone clarified the definition of its recurring
performance indicators, without modifying neither their content nor
their calculation which are detailed hereafter.
Recurring operating income is
defined as Danone’s operating income excluding Other operating
income and expenses. Other operating income and expenses comprise
items that, because of their significant or unusual nature, cannot
be viewed as inherent to Danone’s recurring activity and have
limited predictive value, thus distorting the assessment of its
recurring operating performance and its evolution. These mainly
include:
- capital gains and losses on disposals of fully consolidated
companies;
- impairment charges on intangible assets with indefinite useful
lives;
- costs related to strategic restructuring and transformation
plans;
- costs related to major external growth transactions;
- costs related to major crisis and major litigations;
- in connection with of IFRS 3 (Revised) and IAS 27 (Revised)
relating to business combinations, (i) acquisition costs related to
business combinations, (ii) revaluation profit or loss accounted
for following a loss of control, and (iii) changes in earn-outs
relating to business combinations and subsequent to acquisition
date.
Recurring operating margin is
defined as Recurring operating income over Sales ratio.
Other non-recurring financial income and
expense corresponds to financial income and expense items
that, in view of their significant or unusual nature, cannot be
considered as inherent to Danone’s recurring financial management.
These mainly include changes in value of non-consolidated
interests.
Non-recurring income
tax corresponds to income tax on non-recurring
items as well as tax income and expense items that, in view of
their significant or unusual nature, cannot be considered as
inherent to Danone’s recurring performance.
Recurring effective tax rate
measures the effective tax rate of Danone’s recurring performance
and is computed as the ratio income tax related to recurring items
over recurring net income before tax.
Non-recurring results from
associates include items that, because of their
significant or unusual nature, cannot be viewed as inherent to the
recurring activity of those companies and thus distort the
assessment of their recurring performance and its evolution. These
mainly include (i) capital gains and losses on disposal and
impairment of Investments in associates, and (ii) non-recurring
items, as defined by Danone, included in the net income from
associates.
Recurring net income (or
Recurring net income – Group Share) corresponds to the Group share
of the consolidated Recurring net income. The Recurring net income
excludes items that, because of their significant or unusual
nature, cannot be viewed as inherent to Danone’s recurring activity
and have limited predictive value, thus distorting the assessment
of its recurring performance and its evolution. Such non-recurring
income and expenses correspond to Other operating income and
expenses, Other non-recurring financial income and expenses,
non-recurring income tax, and non-recurring income from associates.
Such income and expenses, excluded from Net income, represent
Non-recurring net income.
Recurring EPS (or Recurring net
income – Group Share, per share after dilution) is defined as the
ratio of Recurring net income adjusted for hybrid financing over
Diluted number of shares. In compliance with IFRS, income used to
calculate EPS is adjusted for the coupon related to the hybrid
financing accrued for the period and presented net of tax.
|
H1 2019 |
|
H1 2020 |
|
Recurring |
|
Total |
|
Recurring |
|
Total |
|
Net income-Group share (€ million) |
1,221 |
|
1,035 |
|
1,100 |
|
1,015 |
|
Coupon related to hybrid financing net of tax (€ million) |
(7) |
|
(7) |
|
(7) |
|
(7) |
|
Number of shares |
|
|
|
|
|
|
|
|
• Before dilution |
647,640,873 |
|
647,640,873 |
|
648,871,267 |
|
648,871,267 |
|
• After dilution |
648,454,100 |
|
648,454,100 |
|
649,710,104 |
|
649,710,104 |
|
EPS (€) |
|
|
|
|
|
|
|
|
• Before dilution |
1.87 |
|
1.59 |
|
1.68 |
|
1.55 |
|
• After dilution |
1.87 |
|
1.58 |
|
1.68 |
|
1.55 |
|
Free cash-flow represents cash
flows provided or used by operating activities less capital
expenditure net of disposals and, in connection with IFRS 3
(Revised), relating to business combinations, excluding (i)
acquisition costs related to business combinations, and (ii)
earn-outs related to business combinations and paid subsequently to
acquisition date.
(€ million) |
H1 2019 |
H1 2020 |
Cash-flow from operating activities |
1,435 |
1,305 |
Capital expenditure |
(359) |
(381) |
Disposal of tangible assets & transaction fees related to
business combinations1 |
8 |
5 |
Free cash-flow |
1,083 |
929 |
1 Represents acquisition costs related to business combinations
paid during the period.
Net financial debt represents
the net debt portion bearing interest. It corresponds to current
and non-current financial debt (i) excluding Liabilities related to
put options granted to non-controlling interests and (ii) net of
Cash and cash equivalents, Short term investments and Derivatives –
assets managing net debt.
(€ million) |
December 31, 2019 |
June 30, 2020 |
Non-current financial debt1 |
12,906 |
14,441 |
Current financial debt1-3 |
4,474 |
5,357 |
Short-term investments |
(3,631) |
(5,102) |
Cash and cash equivalents |
(644) |
(769) |
Derivatives — non-current assets2 |
(271) |
(375) |
Derivatives — current-assets2 |
(16) |
(58) |
Net debt |
12,819 |
13,493 |
·Liabilities related to put options granted to non-controlling
interests — non-current |
(13) |
(13) |
·Liabilities related to put options granted to non-controlling
interests — current |
(469) |
(392) |
Net financial debt |
12,337 |
13,088 |
1 Including derivatives-liabilities. As from
January 1st 2019, also include debt related to leases in compliance
with IFRS 16 2 Managing net debt only3 Including in 2020 €1.4bn
liability related to the payment of 2019 dividend to Danone’s
shareholders
o o O o o
FORWARD-LOOKING STATEMENTS
This press release 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”,
“foresee”, “likely”, “may”, “should”, “goal”, “target”, “might”,
“will”, “could”, “predict”, “continue”, “convinced” and
“confident,” the negative or plural of these words and other
comparable terminology. Forward looking statements in this document
include, but are not limited to, predictions of future activities,
operations, direction, performance and results of Danone.
Although Danone believes its expectations are
based on reasonable assumptions, these forward-looking statements
are subject to numerous risks and uncertainties, which could cause
actual results to differ materially from those anticipated in these
forward-looking statements. For a detailed description of these
risks and uncertainties, please refer to the “Risk Factor” section
of Danone’s Universal Registration Document (the current version of
which is available on www.danone.com).
Subject to regulatory requirements, Danone does
not undertake to publicly update or revise any of these
forward-looking statements. This document does not constitute an
offer to sell, or a solicitation of an offer to buy Danone
securities.
The
presentation to analysts and investors, held by Chairman and CEO
Emmanuel Faber, and CFO Cécile Cabanis, will be broadcast live
today from 9:00 a.m. (Paris time) on Danone’s website
(www.danone.com). Related slides will also be available on the
website in the Investors section.
APPENDIX – Sales by reporting entity and by geographical
area (in € million)
|
First quarter |
Second quarter |
First half |
|
2019 |
2020 |
2019 |
2020 |
2019 |
2020 |
BY REPORTING ENTITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
EDP |
3,308 |
3,364 |
3,283 |
3,238 |
6,600 |
6,599 |
Specialized Nutrition |
1,828 |
1,949 |
1,866 |
1,792 |
3,696 |
3,739 |
Waters |
1,002 |
928 |
1,346 |
925 |
2,352 |
1,851 |
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe & Noram1 |
3,381 |
3,469 |
3,471 |
3,352 |
6,851 |
6,822 |
Rest of the World |
2,757 |
2,772 |
3,025 |
2,602 |
5,797 |
5,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
6,138 |
6,242 |
6,496 |
5,954 |
12,648 |
12,189 |
|
First quarter 2020 |
Second quarter 2020 |
First half 2020 |
|
Reported change |
Like-for-like change |
Reported change |
Like-for-like change |
Reported change |
Like-for-like change |
BY REPORTING ENTITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
EDP |
+1.7% |
+4.6% |
-1.4% |
+1.6% |
-0.0% |
+3.1% |
Specialized Nutrition |
+6.6% |
+7.9% |
-4.0% |
-2.2% |
+1.2% |
+2.7% |
Waters |
-7.4% |
-6.8% |
-31.3% |
-28.0% |
-21.3% |
-19.1% |
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe & Noram1 |
+2.6% |
+4.7% |
-3.4% |
-3.5% |
-0.4% |
+0.5% |
Rest of the World |
+0.5% |
+2.6% |
-14.0% |
-8.2% |
-7.4% |
-3.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
+1.7% |
+3.7% |
-8.3% |
-5.7% |
-3.6% |
-1.1% |
1North America (Noram): United States and
Canada
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