In March 2022, Antoine de Saint-Affrique, newly appointed head of Danone, unveiled its strategic plan. On this occasion, the financial community was invited to Evian-les-Bains (Haute-Savoie), to the historical sources of the agri-food company. And the new general director highlighted an innovation: a bottle of Evian with bubbles.
From tradition to modernity. Almost two years later, the focus is on the Netherlands and the future. Investors were, in fact, invited to visit the Utrecht research center on Wednesday June 19 before heading to Amsterdam the next day for a strategic presentation. A choice which is not insignificant, knowing that the scientific teams gathered in Holland focus on specialized, infant and medical nutrition.
However, Mr. de Saint-Affrique decided to make nutritional drinks intended for elderly or sick people one of Danone’s development engines. A spearhead of its strategy to ensure profitable growth, of which it is drawing a new stage. In 2022, the general director of the group known for its Activia, Alpro, Actimel and Volvic brands, by presenting his “Renew Danone” plan, consolidated the flagship of the CAC 40 in its three businesses: dairy and plant-based products, bottled waters and specialized nutrition.
Risks of malnutrition
The first still remains the heart of the world leader in yogurt. It represents half of its turnover, which reached 27.6 billion euros in 2023. Specialized nutrition, for its part, represents 8.3 billion euros, including 40% for its medical applications. But its growth rate (6.7%) and its operating margin (20.8%), compared to the group’s 12.6%, offer bright prospects. Especially since Danone is banking on the aging of the world population to boost the market. It intends to expand a range of suitable products such as Fortimel, a flavored hyperprotein and hyperenergetic oral nutritional supplement to combat the risks of malnutrition.
The group is discussing other avenues that could support its growth. Like that of consumption outside the home. Or even the extension of its geographic areas of activity. He mentions, for example, India or South-East Asia as possible territories of conquest. In this context, Antoine de Saint-Affrique gave some financial perspectives to investors. It expects annual growth on a comparable basis of between 3% and 5% over the period 2025-2028. And sets the objective of faster growth in current operating income. But nothing is said about the operating margin.
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