Danone back to growth in Q2 with all categories contributing
2021
Half-Year
ResultsPress release – Paris, July 29, 2021
Danone back to
growth in Q2 with
all categories
contributing
-
Net sales of €6,171m in
the second quarter, up
+6.6% on a like-for-like (LFL)
basis, and +3.6% on a reported basis, leading H1 sales to
grow +1.6% on a like-for-like basis
-
Return to growth driven by focus on execution and
delivery: core portfolio renovation and innovation,
acceleration in strategic channels and selected investments in key
battles
-
Recurring operating margin at 13.1%: selective
pricing initiatives, coupled with efficient product mix management
and stepped-up productivity partially offsetting adverse category
mix and higher inflation
-
Reported EPS up +5.1% at €1.63 and
recurring EPS down
-9.3% at
€1.53
-
Continued disciplined cash management, with free
cash flow reaching €1.0 bn in H1, and
further progress on portfolio management
with the disposal of Mengniu stake and sale of Vega
-
Launch of a
share buyback program of up
to €800m in the second half of the year
- 2021
guidance reiterated: return to profitable growth in H2,
and FY recurring operating margin broadly in line with 2020
|
2021 Half-Year Key
Figures |
in millions of euros except if stated otherwise |
H1 2020 |
H1 2021 |
Reported Change |
Like-for-like(LFL) |
Sales |
12,189 |
11,835 |
-2.9% |
+1.6% |
Recurring operating income |
1,702 |
1,551 |
-8.9% |
-4.2% |
Recurring operating margin |
14.0% |
13.1% |
-86 bps |
-83 bps |
Non-recurring operating income and expenses |
(123) |
(700) |
(577) |
|
Operating income |
1,580 |
851 |
-46.1% |
|
Operating margin |
13.0% |
7.2% |
-576 bps |
|
Recurring net income – Group share |
1,100 |
1,000 |
-9.1% |
|
Non-recurring net income – Group share |
(86) |
68 |
+153 |
|
Net income – Group share |
1,015 |
1,068 |
+5.2% |
|
Recurring EPS (€) |
1.68 |
1.53 |
-9.3% |
|
EPS (€) |
1.55 |
1.63 |
+5.1% |
|
Free cash flow |
929 |
1,009 |
+8.6% |
|
Cash flow from operating activities |
1,305 |
1,381 |
+5.8% |
|
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,
and 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 6 to 8. The
calculation of Net Debt/EBITDA is detailed in the universal
registration document.
Véronique Penchienati-Bosetta and Shane
Grant: interim
co-CEOs statement
“We are pleased to report a return to growth
across all our categories this quarter, thanks to the teams’
commitment and focus on execution and delivery. On a two-year
basis, our like-for-like sales growth is also positive, on both Q2
and H1. We maintained strong momentum in our EDP business, led by
growth in Dairy, and Plant-based reporting its 6th consecutive
quarter of double-digit growth, and a solid performance in Europe
and Noram. Specialized Nutrition returned to growth in Q2, with
notably a consistent high single-digit performance in Adult
Nutrition and a positive growth in Infant Nutrition. Waters was
also back to growth in Q2 as restrictions in some parts of Europe
lifted and thanks to market share gains in the region, yet emerging
geographies are still more impacted by the negative effect of
covid-related restrictions on out-of-home trends. Our continued
focus on core portfolio renovation and innovation, supported by
selective reinvestments and channel execution focus, has helped our
leading brands such as Alpro, Actimel, Neocate, evian and Oikos
grow market share, playing into global trends towards health and
immunity.
Margin held up well despite an adverse category
mix and accelerated inflation. Strong productivity delivery coupled
with selective pricing and mix management allowed us to partially
offset headwinds.
Looking ahead, we reiterate our guidance for the
full year. Although the macro context is still uncertain, we have
strong foundations across our categories, geographies and brands.
Local First project is progressing according to plan. We will
continue to adopt a disciplined approach to capital management and
remain focused on delivering on our growth priorities and plans in
the second half.”
I.
2021 HALF-YEAR
RESULTS
Second quarter
and half-year sales
In the first
half of
2021, consolidated sales stood at
€11.8 bn, up +1.6% on a like-for-like basis, led by +2.6% in value
and -1.0% in volume. On a reported basis, sales were down -2.9%,
mainly driven by the negative impact of exchange rates (-5.5%) that
resulted from currencies’ depreciation against the euro in the
United States, Latin America, Indonesia, Turkey and Russia. On the
other hand, reported sales benefited from a slightly positive scope
effect (+0.5%), as well as the +0.4% organic contribution of
hyperinflation geographies to growth.
In the second
quarter, sales increased by +6.6% on a
like-for-like basis, with value up +4.7% and volumes +1.8%.
Reported sales rose +3.6%, mainly impacted by a still strong
negative effect of -4.0% from exchange rates.
In terms of regional dynamics,
strong growth was broad-based in the second quarter. Europe and
North America sales were up +6.4% on a like-for-like basis, led by
the recovery in Waters, as well as sustained solid momentum for
EDP, and a return to growth for Specialized Nutrition. Sales in the
Rest of the World increased by +6.9% on a like-for-like basis,
notably led by the softer basis of comparison in EDP and
Waters.
€ millionexcept % |
Q22020 |
Q2 2021 |
Reported change |
LFL Sales Growth |
Volume Growth |
H12020 |
H12021 |
Reported change |
LFL Sales Growth |
Volume Growth |
BY REPORTING ENTITY |
|
|
|
|
|
|
|
|
|
|
EDP |
3,238 |
3,254 |
+0.5% |
+4.8% |
+2.2% |
6,599 |
6,406 |
-2.9% |
+3.2% |
+1.3% |
Specialized Nutrition |
1,792 |
1,793 |
+0.1% |
+2.8% |
-1.4% |
3,739 |
3,513 |
-6.0% |
-2.6% |
-4.3% |
Waters |
925 |
1,125 |
+21.6% |
+19.5% |
+6.6% |
1,851 |
1,916 |
+3.5% |
+4.5% |
-2.3% |
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
|
|
|
Europe & Noram1 |
3,352 |
3,510 |
+4.7% |
+6.4% |
+4.1% |
6,822 |
6,784 |
-0.6% |
+1.7% |
+0.7% |
Rest of the World |
2,602 |
2,661 |
+2.3% |
+6.9% |
-0.0% |
5,368 |
5,051 |
-5.9% |
+1.4% |
-2.2% |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
5,954 |
6,171 |
+3.6% |
+6.6% |
+1.8% |
12,189 |
11,835 |
-2.9% |
+1.6% |
-1.0% |
1North America (Noram): United States and
CanadaRecurring Operating Margin
Danone’s recurring operating income reached
€1.6bn in H1 2021. Recurring operating margin stood at
13.1%,
down -86 basis points (bps) on a reported basis and -83 bps on a
like-for-like basis. This change was mainly driven by the negative
impact of input costs inflation as well as a negative category mix,
for a combined impact of -490 bps. These headwinds were partially
offset by the effects of valorization and productivity that added
+430 bps to the margin in the first half, as Danone reinvested
selectively in its brands. Reported margin also reflects the
negative impact of its change in scope (-16 bps), the positive
currency impact (+15 bps), and +3 bps reflecting the impact of
organic contribution from hyperinflation geographies.
Recurring operating profit (€m) and margin (%) |
H1 2020 |
H1 2021 |
Change |
€m |
Margin (%) |
€m |
Margin (%) |
Reported |
Like-for-like |
BY REPORTING ENTITY |
|
|
|
|
|
|
EDP |
598 |
9.1% |
584 |
9.1% |
+5 bps |
-4 bps |
Specialized Nutrition |
987 |
26.4% |
804 |
22.9% |
-351 bps |
-293 bps |
Waters |
117 |
6.3% |
163 |
8.5% |
+219 bps |
+185 bps |
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
Europe & Noram2 |
880 |
12.9% |
898 |
13.2% |
+34 bps |
+34 bps |
Rest of the World |
822 |
15.3% |
653 |
12.9% |
-239 bps |
-245 bps |
|
|
|
|
|
|
|
Total |
1,702 |
14.0% |
1,551 |
13.1% |
-86 bps |
-83 bps |
2North America (Noram): United States and
CanadaPerformance by reporting entity
- ESSENTIAL DAIRY AND
PLANT-BASED (EDP)
Essential Dairy &
Plant-based posted sales growth of +3.2% in H1 2021 on a
like-for-like basis and recurring operating margin remained broadly
stable at 9.1%, with strong productivity mitigating the heightened
milk inflation.
In the second quarter, sales
accelerated from Q1, reaching +4.8% on a like-for-like basis,
reflecting a +2.2% increase in volume and +2.6% in value. The
Essential Dairy portfolio delivered solid growth while Plant-based
posted its 6th quarter of double-digit growth. Europe and
Noram delivered another quarter of solid growth, led by
the Plant-based, Probiotics and Protein platforms. In Europe, Alpro
registered another quarter of steep double-digit growth on the back
of strong investments and global market share gains, while
Probiotics showed solid growth led by Actimel. Noram posted its
second successive record sales quarter, led by yogurt returning to
broad-based growth and share gains led by Oikos, Two Good and
Activia, with sustained growth in Creamers, and its highest ever
share in Premium Dairy. In Plant-based, growth was led by Creamers
and Yogurt. In the Rest of the World, sales growth
was strong, thanks to the favorable basis of comparison in Latam
and Africa, while CIS performance remained soft amid a challenging
macro-economic and sanitary environment.
Specialized Nutrition sales declined -2.6% in
H1 2021 on a like-for-like basis. Recurring operating margin
decreased by -351 bps to 22.9%, strongly impacted by a negative
country mix.
In the second
quarter, sales increased by +2.8% on a
like-for-like basis, with a decrease of -1.4% in volume and an
increase of +4.2% in value, after a heavily negative first quarter.
Adult Nutrition, which now represents
approximately 15% of Specialized Nutrition revenues, delivered high
single-digit sales growth, with all geographies and all segments
contributing. Infant Nutrition posted low
single-digit sales growth. In Europe, sales grew by high single
digits on a back of softer bases of comparison. In China,
performance remained polarized. Domestic labels posted positive
growth in the quarter, despite the very high base of comparison,
leading to a semester growing at around mid single digits.
E-commerce platforms for International labels delivered very strong
growth, while indirect cross-border channels, which include
Daigous, Friends&Family and the Hong-Kong platform, continued
to be under pressure and declined within the -45% to -60% range
they delivered in the second half of 2020. Aptamil market share
continued to be resilient. In other regions, Danone’s platforms
delivered another solid quarter of growth.
Waters sales increased by +4.5%
in H1 2021 on a like-for-like basis, driven by the gradual recovery
in volumes and a positive country and product mix. Recurring
operating margin was up +219 bps to 8.5%, despite a strong
inflationary environment, thanks to the volume recovery, a positive
product mix, and strong efforts on productivity, including plastic
hedging.
In the second
quarter, sales were up +19.5% on a like-for-like
basis, led by volumes up +6.6% and value +12.9%.
Europe delivered steep double-digit growth on the
back of recovering mobility, as well as market share gains in key
markets including France, Germany, the UK and Poland.
In the Rest of the World, Mizone
closed its third consecutive positive quarter in China, delivering
low double-digit growth in the second quarter, and continued to
gain market share as it enters the peak season for consumption.
Indonesia and Latin America platforms delivered steep double-digit
growth in the quarter, from a lower basis of comparison, but
mobility is still restricted and highly volatile as both regions
remain heavily exposed to Covid infections and have low vaccination
rates.
Net income and Earnings per
share
Other operating income and
expense reached -€700 million vs -€123 million in the
prior year, resulting mostly from the Local First project and the
transformation of Danone’s operations. As a result, reported
operating margin was down -576 bps from 13.0% to 7.2%.
Net financial costs were down
by €42 million to -€129 million, resulting notably from a decrease
in the cost of net debt due to two bond reimbursements in 2020
issued at higher interest rates, as well as a new bond issuance at
0% coupon in June 2021. The Recurring income tax
rate stood at 27.5%, broadly in line with the prior year.
The Recurring net income from associates decreased
significantly from €21 million to €9 million, reflecting mainly the
disposal of Danone’s stakes in Mengniu and Yakult. Danone is also
engaged in a disposal process of its 20% stake in the Fresh Dairy
JV with Mengniu, which is thus classified as an asset held for sale
under IFRS 5 as from June 30, 2021. Recurring
minority interests stood at €40 million,
broadly in line with the prior year, reflecting a performance
across entities with minorities still under pressure.
As a result, Recurring
EPS was €1.53, down -9.3% vs. last year, but Reported EPS
increased by 5.1% to €1.63.
|
H1 2020 |
H1 2021 |
|
in millions of euros except if stated otherwise |
Recurring |
Non-recurring |
Total |
|
Recurring |
Non-recurring |
Total |
|
Recurring operating income |
1,702 |
|
1,702 |
|
1,551 |
|
1,551 |
|
Other operating income and expense |
|
(123) |
(123) |
|
|
(700) |
(700) |
|
Operating income |
1,702 |
(123) |
1,580 |
|
1,551 |
(700) |
851 |
|
Cost of net debt |
(110) |
|
(110) |
|
(87) |
|
(87) |
|
Other financial income and expense |
(60) |
0 |
(60) |
|
(43) |
0 |
(42) |
|
Income before taxes |
1,532 |
(123) |
1,410 |
|
1,422 |
(699) |
722 |
|
Income
tax |
(414) |
36 |
(378) |
|
(391) |
173 |
(218) |
|
Effective tax rate |
27.0% |
|
26.8% |
|
27.5% |
|
30.2% |
|
Net income from fully consolidated companies |
1,118 |
(86) |
1,032 |
|
1,031 |
(527) |
504 |
|
Net income
from associates |
21 |
0 |
22 |
|
9 |
593 |
602 |
|
Net
income |
1,139 |
(86) |
1,053 |
|
1,040 |
66 |
1,106 |
|
• Group share |
1,100 |
(86) |
1,015 |
|
1,000 |
68 |
1,068 |
|
• Non-controlling interests |
39 |
(0) |
39 |
|
40 |
(2) |
38 |
|
EPS (€) |
1.68 |
|
1.55 |
|
1.53 |
|
1.63 |
|
Cash flow and Debt
Free cash flow reached €1,009
million in H1 2021, up +8.6% from the prior year, reflecting
persistent pressure on operating performance. This implies a cash
conversion rate of 8.5%, up +90 bps from H1 2020. Capex stood at
€390 million, broadly stable compared to last year (€381 million in
H1 2020).
As of June 30, 2021, Danone’s net debt
stood at €11.1 bn, down
€827 million from December 31, 2020.
II. 2021 OUTLOOK AND
GUIDANCE
Macro-economic outlookDespite
short-term uncertainties, a gradual reopening of economies is
assumed to continue in H2 as vaccination programs are rolled out.
Meanwhile, a broad-based acceleration of inflation in milk,
ingredients, packaging and logistics is expected.
2021 guidance reiteratedDanone
expects to return to profitable growth in H2, and FY recurring
operating margin is expected to be broadly in line with 2020.
III.
SHARE BUYBACK
As announced in February in the press release on
the conversion and disposal of Danone’s stake in Mengniu, and in
line with its disciplined capital allocation, Danone expects to buy
back up to €800m worth of shares, in one or more tranches, in the
second half of 2021.
IV.
MAJOR DEVELOPMENTS OVER THE PERIOD
Change in management
On May 17, 2021, Danone announced the
appointment of Antoine de Saint-Affrique as Chief Executive
Officer, effective September 15, 2021, following a rigorous
selection process led by the Governance Committee. Antoine de
Saint-Affrique will succeed the joint interim leadership of
Véronique Penchienati-Bosetta and Shane Grant. His appointment as a
new member of the Board of Danone will be proposed at the next
annual shareholders’ meeting in April 2022.
Major financial
transactions
- April
29,
2021: At Danone’s 2021 Annual General
Meeting, Shareholders approved all resolutions submitted to a vote,
including the proposed dividend of €1.94 per share in cash, as well
as the proposed renewals of terms of office as members of the Board
of Directors of Guido Barilla, Cécile Cabanis, Michel Landel and
Serpil Timuray, and the ratification of the co-opting of Gilles
Schnepp as Director.
- May 13, 2021:
Danone announced that it had finalized the strategic sale of its
approximately 9.8% stake in China Mengniu Dairy Company Limited,
originally announced on May 12, 2021. The transaction resulted in
total gross proceeds of HKD 15.4 billion, representing c. €1.6
billion, for a book value of €850 million (as of 31/12/2020). The
settlement of the transaction took place on May 17, 2021.
- May 25, 2021:
Danone issued a €1 billion bond with a 4.5-year maturity and a 0%
coupon. In line with the company’s active liquidity management,
this issue enables Danone to take further advantage of market
windows to enhance its funding flexibility, extend the maturity of
its debt and optimize its cost.
- June 17, 2021:
Danone signed an agreement to sell Vega, the Canada and US
plant-based nutritional products business, to funds managed by WM
Partners, a US-based private equity investment firm focused on the
health and wellness industry. The sale of Vega is part of Danone’s
continuous capital allocation optimization and of the strategic
review of Danone’s portfolio of brands, SKUs and assets announced
in October 2020. The deal was closed on July
28.
- June 30, 2021:
Danone Manifesto Ventures announced that it acquired an additional
majority stake in Harmless Harvest, becoming its majority
shareholder. Harmless Harvest is a leader in organic coconut-based
products including coconut water and dairy-free coconut yogurt
alternatives.
- July 29, 2021:
S&P Global Ratings assigned Danone an ESG Evaluation score of
85/100. This reflects Danone’s comprehensive sustainability
strategy, viewed as strongly embedded in its broader long-term
strategy, decision-making, and culture. As a result, Danone is
confirmed as one of the companies most prepared to take advantage
of long-term trends in the food and beverage industry and adapt to
potential disruptions.
V. IFRS STANDARDS AND
FINANCIAL INDICATORS NOT DEFINED IN IFRS
IAS29: impact on reported
data
Danone has been applying IAS 29 in
hyperinflation countries as defined in IFRS. Adoption of IAS 29 in
these hyperinflationary countries 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 euros using the closing exchange rate of the
relevant period.
IAS29: impact on reported data €
million except % |
Q2
2021 |
|
H1 2021 |
|
Sales |
4 |
|
15 |
|
Sales growth (%) |
+0.07% |
|
+0.13% |
|
Recurring Operating Income |
|
|
-15 |
|
Recurring Net Income – Group share |
|
|
-12 |
|
Breakdown by quarter of first-half 2021 sales
after application of IAS 29H1 2021 sales correspond to the addition
of:
- Q2 2021
reported sales;
- Q1 2021 sales
resulting from the application of IAS29 until June 30, 2021 to
sales of entities of hyperinflation countries (application of the
inflation rate until June 30, 2021 and translation into euros using
June 30, 2021 closing rate) and provided in the table below for
information (unaudited data).
€ million |
Q1 20211 |
Q2 2021 |
H1 2021 |
EDP |
3,153 |
3,254 |
6,406 |
Specialized Nutrition |
1,721 |
1,793 |
3,513 |
Waters |
791 |
1,125 |
1,916 |
|
|
|
|
Total |
5,664 |
6,171 |
11,835 |
1 Results from the application of IAS29 until
June 30, 2021 to Q1 sales of entities of hyperinflation
countries.
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, both previous-year
and current-year scopes excluding entities in countries under
hyperinflation according to IAS 29 during the previous year (as for
Argentinian entities since January 1st, 2019);
- 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 2020 |
Impact of changesin scope of
consolidation |
Impact of changes in exchange rates and others, including
IAS29 |
Organic contribution from
hyperinflation countries |
Like-for-like growth |
H1 2021 |
|
|
|
|
|
|
|
Sales |
12,189 |
+0.5% |
-5.5% |
+0.4% |
+1.6% |
11,835 |
Recurring operating margin |
14.0% |
-16 bps |
+9 bps |
+3 bps |
-83 bps |
13.1% |
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 restructurings or 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 2020 |
|
H1 2021 |
|
Recurring |
|
Total |
|
Recurring |
|
Total |
|
Net income-Group share (€ million) |
1,100 |
|
1,015 |
|
1,000 |
|
1,068 |
|
Coupon related to hybrid financing net of tax (€ million) |
(7) |
|
(7) |
|
(8) |
|
(8) |
|
Number of shares |
|
|
|
|
|
|
|
|
• Before dilution |
648,871,267 |
|
648,871,267 |
|
650,135,856 |
|
650,135,856 |
|
• After dilution |
649,710,104 |
|
649,710,104 |
|
650,695,040 |
|
650,695,040 |
|
EPS (€) |
|
|
|
|
|
|
|
|
• Before dilution |
1.68 |
|
1.55 |
|
1.53 |
|
1.63 |
|
• After dilution |
1.68 |
|
1.55 |
|
1.53 |
|
1.63 |
|
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 2020 |
H1 2021 |
Cash-flow from operating activities |
1,305 |
1,381 |
Capital expenditure |
(381) |
(390) |
Disposal of tangible assets & transaction fees related to
business combinations1 |
5 |
17 |
Free cash-flow |
929 |
1,009 |
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 earn-outs on
acquisitions resulting in control and (ii) net of Cash and cash
equivalents, Short term investments and Derivatives – assets
managing net debt.
(€ million) |
December 31, 2020 |
June 30, 2021 |
Non-current financial debt |
12,343 |
12,733 |
Current financial debt |
4,157 |
4,922 |
Short-term investments |
(3,680) |
(5,686) |
Cash and cash equivalents |
(593) |
(604) |
Derivatives — non-current assets1 |
(259) |
(179) |
Derivatives — current-assets1 |
(27) |
(72) |
Net debt |
11,941 |
11,114 |
- Liabilities related to put options granted to non-controlling
interests — non-current
|
(7) |
(47) |
- Liabilities related to put options granted to non-controlling
interests and earn-outs on acquisitions resulting in control —
current
|
(355) |
(380) |
Net financial debt |
11,579 |
10,687 |
1 Managing net debt only
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 at 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
interim co-CEOs Véronique
Penchienati-Bosetta and Shane Grant, and CFO
Juergen Esser, 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 |
|
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
BY REPORTING ENTITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
EDP |
3,364 |
3,149 |
3,238 |
3,254 |
6,599 |
6,406 |
Specialized Nutrition |
1,949 |
1,719 |
1,792 |
1,793 |
3,739 |
3,513 |
Waters |
928 |
790 |
925 |
1,125 |
1,851 |
1,916 |
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe & Noram1 |
3,469 |
3,273 |
3,352 |
3,510 |
6,822 |
6,784 |
Rest of the World |
2,772 |
2,384 |
2,602 |
2,661 |
5,368 |
5,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
6,242 |
5,657 |
5,954 |
6,171 |
12,189 |
11,835 |
|
First quarter 2021 |
Second quarter 2021 |
First half 2021 |
|
Reported change |
Like-for-like change |
Reported change |
Like-for-like change |
Reported change |
Like-for-like change |
BY REPORTING ENTITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
EDP |
-6.4% |
+1.6% |
+0.5% |
+4.8% |
-2.9% |
+3.2% |
Specialized Nutrition |
-11.8% |
-7.7% |
+0.1% |
+2.8% |
-6.0% |
-2.6% |
Waters |
-14.9% |
-11.6% |
+21.6% |
+19.5% |
+3.5% |
+4.5% |
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe & Noram1 |
-5.6% |
-2.8% |
+4.7% |
+6.4% |
-0.6% |
+1.7% |
Rest of the World |
-14.0% |
-4.2% |
+2.3% |
+6.9% |
-5.9% |
+1.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
-9.4% |
-3.3% |
+3.6% |
+6.6% |
-2.9% |
+1.6% |
1North America (Noram): United States and
Canada
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