Danone confirms strategic priorities, says each core business, including nutrition, has role to play
Danone [EPA:BN] confirmed its 2014 targets including organic growth of over 4.5% and trading operating margin down less than 20 basis points like-for-like. Free cash-flow will be between EUR 1.3 and 1.4bn.
CEO Emmanuel Faber said: "When I was appointed in October, I shared with our 100,000 employees that there was no greater inspiration than our mission: bringing health through food to as many people as possible. As 2014 draws to an end, I want to re-emphasize that message and reiterate that each of our core businesses - Fresh Dairy Products, Waters, Early Life Nutrition and Medical Nutrition - has a role to play in living up to our mission and achieving the profitable, sustainable growth that is an integral part of our strategy."
Against this backdrop, Danone will continue to expand capacity rapidly and build development platforms in fast-growing regions, particularly Asia and Africa. Investments made for this purpose over the past two years have resulted in a higher use of debt than in the past, at a level that could imply a credit rating one notch lower, and that is appropriate for this current period of development given the company`s sound cash-flow outlook and debt structure.
To deploy this strategy and support the "Danone 2020" ambition, Emmanuel Faber has decided to strengthen his management team, announcing the following appointments that will take effect from January 1, 2015:
Gustavo Valle is appointed Executive Vice President Fresh Dairy Products. He is tasked with consolidating the division`s return to growth initiated by Thomas Kunz. After successfully leading the development of Danone`s Dairy business in Brazil and in the United States, Gustavo Valle was serving as Executive Vice President Europe.
Pierre-André Térisse is appointed Executive Vice President of the newly created Africa division. Over the past two years, Danone has consolidated existing positions and entered new markets on this continent, generating revenues of EUR1.2 billion. The company has set up this new multi-business structure to accelerate expansion in this strategic region. Since 2008, Pierre-André Térisse has served as the company`s CFO.
Cécile Cabanis is appointed to replace Pierre-André Térisse as CFO effective February 20, 2015. She joined Danone in 2004, and has served in a range of key positions in finance, including Corporate Finance Director, then head of Business Development. Since 2010, she has been Vice President Finance for the Fresh Dairy Products division.
The full announcement can be found here.
According to reports earlier in the week, on the agenda of Danone's board meeting on Thursday was the decision whether to proceed with a sale of the French group's medical nutrition unit to Germany-based Fresenius [FRA:FRE] or US-based Hospira [NYSE:HSP]. Danone was expected to push for a deal above EUR 3bn, and Fresenius -- which is bidding with Permira Advisers -- was the frontrunner, according to one report. As reported, Danone has been pondering whether to pursue an initial public offering for the unit while in talks regarding a sale. Both potential bidders have been named perviously in reports, in addition to Nestle and buyout firms.