The number three food company in Europe did not fail to be questioned about its positions in Russia, on the occasion of the presentation of its annual results. According to Antoine de Saint-Affrique, the new general manager, this market “ represents about 5% of our sales. It is, moreover, an essentially local activity, with Russian production for consumers in the CIS.
Danone had been present in the former USSR since the early 1990s when the group took control in 2010 of Unimilk, the second Russian producer of fresh dairy products which had been merged with the local activities of the French.
A great end of the year
The latter then acquired 57.5% of the capital of Unimilk for 1.3 billion euros, bringing its market share to just over 20% in Russia. The country had thus become Danone’s leading market, on a par with France, for around 11% of the group’s turnover, but it had also contributed to degrading its operational profitability. The acquisition of WhiteWave in the United States then put the weight of the CIS into perspective.
The Stock Exchange also welcomed the good figures presented for the year 2021 and, above all, the strong commercial momentum of the last quarter. Over the three months from October to December, Danone saw its sales increase by 10.9% over one year, to 6.24 billion euros, in published data, and by 6.7% at consolidation scope and rate of constant changes. An evolution higher than consensus expectations, which aimed for growth of 5.2% internally.
Jefferies Highlights the Robustness of Specialty Nutrition
Jefferies analysts, who had expected like-for-like billings to rise 5.5%, strong performance in the specialty nutrition business, where growth was double-digit in China in the fourth quarter, and in the water division. Over one year, sales in these two divisions increased by 6.4% and 17.3% respectively on a like-for-like basis.
As for the 2022 objectives, we will have to wait until March 8, when an investor day is held, dedicated to the presentation of the group’s forecasts for this year as well as for the medium term.