• Danone: Solid first half of the year; Making consistent progress on Renew Danone

    Источник: Nasdaq GlobeNewswire / 26 июл 2023 01:31:05   America/New_York

    2023 Half-Year Results
    Press release – Paris, July 26, 2023

    Solid first half of the year
    Making consistent progress on Renew Danone

    • Net sales reached €14,167m in H1 2023, up +6.3% on a reported basis and +8.4% on a like-for-like (LFL) basis, with price up +9.4%, and volume/mix down -1.1%
    • Q2 sales growth reached +6.4% on a LFL basis, with price up +8.7% and volume/mix down -2.3%
      • +6.5% in Europe, driven by France, Poland and Spain; further progress on EDP portfolio transformation
      • +5.0% in North America, led by Yogurt, Coffee Creations and Waters
      • +9.6% in China, North Asia & Oceania, supported by all categories
      • +10.8% in Latin America, led by EDP and Specialized Nutrition
      • +3.9% in Rest of the World, with Q2 performance normalizing after Q1 one-offs
    • Recurring operating margin up +14 bps at 12.2%; significant reinvestments in A&P, product superiority and capabilities (-99 bps impact)
    • Operational performance driving earnings: recurring EPS at €1.76, up +7.6% from last year
    • €1.1 bn free-cash-flow, driven by operational performance and supported by disciplined capital allocation
    • 2023 guidance reiterated: like-for-like sales growth between +4 and +6%; moderate improvement in recurring operating margin


    2023 Half-Year Key Figures


    in millions of euros except if stated otherwiseH1 2022H1 2023Reported ChangeLike-for-like
    Change (LFL)
    Sales13,32514,167+6.3%+8.4%
    Recurring operating income1,6121,734+7.6%+5.8%
    Recurring operating margin12.1%12.2%+14 bps-30 bps
    Non-recurring operating income and expenses(233)(53)+180 
    Operating income1,3801,681+21.9% 
    Operating margin10.4%11.9%+152 bps 
    Recurring net income – Group share1,0511,133+7.8% 
    Non-recurring net income – Group share(314)(40)+273 
    Net income – Group share7371,093+48.2% 
    Recurring EPS (€)1.631.76+7.6% 
    EPS (€)1.141.70+48.3% 
    Free cash flow6741,124+66.9% 
    Cash flow from operating activities9701,424+46.8% 

    1

    Antoine de Saint-Affrique: CEO statement

    “As we navigate an unprecedented situation in Russia, my very first thoughts go to all our colleagues there.

    In an environment that remains volatile and challenging, we further built our track record of delivery with a solid first half of the year: like-for-like sales growth reached +8.4%, supported by resilient volume/mix and continued pricing. Growth remains broad-based, with all geographies contributing.

    These past few months, we made consistent progress on our strategic agenda, further strengthening our Core, investing behind our winners and actively addressing our underperformers. And while we see green shoots of success across the portfolio - exemplified by the continued performance of International Delight, Aptamil, evian and YoPro, or the encouraging momentum behind Mizone – we know the job is not done. We remain, more than ever, focused on building further resilience into Danone, by further stepping up our execution, but also by leveraging increasingly more our Science, Operations and Investments.

    Importantly, the last 18 months’ efforts on restoring the fundamentals are starting to pay: our gross margin has expanded in the first half of the year, which allows us to significantly invest behind our brands – 99bps in the first half – while improving margins moderately and delivering healthy free cash flows. In short, we are progressing towards the business model we strive for.

    While a lot remains to be done, this makes us look at the future with confidence: this year, we expect to deliver a like-for-like sales growth in the upper end of our +4 and +6% guidance, underpinned by sequential volume/mix improvement in the second half, and moderate recurring operating margin improvement.”

    I. SECOND QUARTER AND HALF-YEAR SALES

    Second quarter and half-year sales

    In Q2 2023, consolidated sales stood at €7.2 bn, up +6.4% on a like-for-like basis, with a +8.7% contribution from price and a -2.3% contribution from volume/mix. On a reported basis, sales increased by +2.4%, reflecting notably a negative impact from forex (-4.3%) and scope (-0.4%), and a positive contribution of hyperinflation (+1.3%).

    In H1 2023, consolidated sales stood at €14.2 bn, up +8.4% on a like-for-like basis, with a +9.4% contribution from price and a -1.1% contribution from volume/mix. On a reported basis, sales increased by +6.3%, notably penalized by a negative forex effect of -2.0%, reflecting in particular the depreciation of various Asian and Latin American currencies against the euro. Reported sales were also impacted by a positive contribution of hyperinflation of +1.3%, and a slightly negative scope effect of -0.5%.

    Sales by operating segment

    € million except %Q2
    2022    		Q2
    2023    		Reported changeLFL Sales
    Growth    		Volume/Mix GrowthH1
    2022    		H1
    2023    		Reported changeLFL Sales
    Growth    		Volume/Mix
    Growth    		 


    BY GEOGRAPHICAL ZONE    		          
    Europe2,2892,429+6.1%+6.5%-5.1%4,4314,677+5.5%+6.4%-4.6% 
    North America 21,6621,704+2.5%+5.0%-2.7%3,1393,418+8.9%+8.3%-1.0% 
    China, North Asia & Oceania 2936954+1.9%+9.6%+8.8%1,6711,778+6.4%+12.4%+11.2% 
    Latin America 3704779+10.7+10.8%-2.0%1,3271,466+10.5%+11.7%-1.1% 
    Rest of the World1,4761,369-7.2%+3.9%-4.3%2,7562,828+2.6%+7.7%-2.8% 


    BY CATEGORY    		          
    EDP3,6843,731+1.3%+6.2%-3.3%7,0627,503+6.3%+7.7%-3.3% 
    Specialized Nutrition2,1062,142+1.7%+4.9%-1.7%4,0294,250+5.5%+8.3%+1.7% 
    Waters1,2771,362+6.6%+9.6%0.0%2,2342,413+8.0%+10.6%+1.1% 
               
    TOTAL7,0677,235+2.4%+6.4%-2.3%13,32514,167+6.3%+8.4%-1.1% 

    In the second quarter, Europe sales were up +6.5% on a like-for-like basis, with price up +11.7% and volume/mix down -5.1%. Growth was led by France, Poland and Spain, while Germany progressively recovers after several months of supply disruptions and temporary delistings. By category, Specialized Nutrition and Waters registered resilient growth, while EDP made further progress in its portfolio transformation. In North America, sales were up +5.0% on a like-for-like basis, with price up +7.7% and volume/mix down -2.7%. Growth was led by Yogurt, Coffee Creations and Waters, with Oikos, International Delight, Stok and evian growing at a double-digit rate, while Plant-based is lapping a high base of comparison. Specialized Nutrition also lapped the high base of last year driven by the shipments realized in the context of Operation Fly Formula. China, North Asia & Oceania posted sales growth of +9.6% on a like-for-like basis, led by +0.8% growth in price and +8.8% growth in volume/mix. In China, Aptamil continued to deliver solid growth in Infant Nutrition, coupled with further market share gains, while Nutrison and Neocate posted strong growth in Adult Nutrition and Pediatric Specialties respectively. In Waters, Mizone registered mid-teens growth, driven by volumes, with market share gains, while in EDP, Japan delivered another quarter of double-digit growth. Latin America posted sales growth of +10.8% on a like-for-like basis, with a +12.9% increase in price and a -2.0% decline in volume/mix, led by Danonino and Danette in Mexico and by Danone and Yopro in Brazil. In the Rest of the World, the performance normalized in the second quarter, after favorable calendar effects in Q1. Sales were up +3.9% on a like-for-like basis, with price up +8.2% and volume/mix down -4.3%, led by key Specialized Nutrition platforms.

    Recurring Operating Margin

    Recurring operating profit (€m) and margin (%)

    		H1 2022H1 2023Change
    €mMargin (%)€mMargin (%)ReportedLike-for-like


    BY GEOGRAPHICAL ZONE    		       
    Europe57412.9%49710.6%-232 bps-290 bps
    North America32548.1%35310.3%+222 bps+229 bps
    China, North Asia & Oceania253432.0%54930.9%-107 bps-156 bps
    Latin America 3-1-0.1%422.8%+291 bps+155 bps
    Rest of the World2519.1%29410.4%+127 bps+13 bps


    BY CATEGORY    		       
    EDP4947.0%6058.1%+107 bps+102 bps
    Specialized Nutrition93323.2%88520.8%-235 bps-351 bps
    Waters1858.3%24410.1%+185 bps+116 bps
            
    Total1,61212.1%1,73412.2%+14 bps-30 bps

    Danone’s recurring operating income reached €1.7 bn in H1 2023. Recurring operating margin stood at 12.2%, up +14 basis points (bps) compared to last year. This increase was mainly driven by the improvement of topline drivers – including volume, mix and price – for a combined estimated impact of c. +630 bps. This positive effect was partially offset by the still strong negative impact of input-cost inflation net of productivity, at c. -540 bps.

    Besides, Danone continued to step-up its reinvestments in A&P, product superiority and capabilities, that had a negative effect of -99 bps in H1 2023. Finally, Overheads before reinvestments had a positive effect of +7 bps.

    In addition to operating effects, reported margin also includes the positive impact of Forex and others, changes in scope, and contribution from hyperinflation, as well as the negative effects from other income and expenses, for a total combined effect of +13 bps.

    Net income and Earnings per share

     H1 2022H1 2023 
    in millions of euros except if stated otherwiseRecurringNon-recurringTotal RecurringNon-recurringTotal 
    Recurring operating income1,612 1,612 1,734 1,734 
    Other operating income and expense (233)(233)  (53)(53) 
    Operating income1,612(233)1,380 1,734(53)1,681 
    Cost of net debt(78) (78) (74) (74) 
    Other financial income and expense(69)6(63) (67)(15)(83) 
    Income before taxes1,466(227)1,239 1,593(68)1,525 
    Income tax(403)28(376) (435)6(429) 
    Effective tax rate27.5% 30.3% 27.3% 28.1% 
    Net income from fully consolidated companies1,063(199)863 1,158(62)1,095 
    Share of profit (loss) of equity-accounted companies25(114)(89) 141933 
    Net income1,088(313)774 1,172(44)1,129 
    • Group share1,051(314)737 1,133(40)1,093 
    • Non-controlling interests37037 39(3)36 
    EPS (€)1.63 1.14 1.76 1.70 

    Other operating income and expense reached -€53 million in H1 2023, vs -€233 million in the prior year. Reported operating margin was up +152 bps, from 10.4% to 11.9%.

    Share of profit of equity-accounted companies stood at €33 million, mainly reflecting the gain on disposal of the 25% stake in Yashili in H1 2023, improving from -€89 million last year, which reflected the impairment related to the disposal of the remaining minority investments in Mengniu partnerships.

    As a result, Reported EPS increased by +48.3% to €1.70, while Recurring EPS was up +7.6% to €1.76.

    Cash flow and Debt

    Free cash flow reached €1,124 million in H1 2023, increasing from €674 million in H1 2022, reflecting the significant increase in cash-flow from operating activities. Capex stood at €310 million.

    As of June 30, 2023, Danone’s net debt stood at €11.2 bn.

    Sales by geography and category

    Q2 2023

    		EuropeNorth AmericaChina/North Asia/OceaniaAMEA, CIS & Latin AmericaTotal
    Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)
               
    EDP1,085+5.8%1,539+5.2%96+14.9%1,012+7.6%3,731+6.2%
    Specialized Nutrition766+3.4%87-9.0%611+6.9%677+7.0%2,142+4.9%
    Waters577+12.4%78+22.3%247+15.1%459+2.0%1,362+9.6%
    Total Company2,429+6.5%1,704+5.0%954+9.6%2,149+6.1%7,235+6.4%


    H1 2023

    		EuropeNorth AmericaChina/North Asia/OceaniaAMEA, CIS & Latin AmericaTotal
    Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)
               
    EDP2,152+5.5%3,106+8.4%180+16.9%2,065+8.1%7,503+7.7%
    Specialized Nutrition1,518+3.0%173-1.9%1,220+10.8%1,340+14.1%4,250+8.3%
    Waters1,007+14.0%139+21.0%378+15.9%889+3.9%2,413+10.6%
    Total Company4,677+6.4%3,418+8.3%1,778+12.4%4,294+9.0%14,167+8.4%

    II. EDP RUSSIA UPDATE

    On October 14, 2022, Danone launched a process to transfer the control of its EDP (Essential Dairy & Plant-based) Business in Russia, which was progressing according to the expected schedule.

    On July 16, 2023, Danone has taken note of the decision of the Russian authorities aiming at placing Danone Russia (EDP) under the temporary external administration of the Russian Federal Agency for State Property Management (Rosimushchestvo).

    On July 18, 2023, the Russian authorities indicated that the Board of Directors and CEO of Danone Russia (EDP) had been changed. These changes took place without the knowledge of, or approval by, Danone. While Danone no longer retains control of the management of its EDP operations in Russia, it remains their legal owner.

    As a result, and as per applicable accounting standards (IFRS), Danone will deconsolidate its EDP Russia operations in July 2023, triggering an approximately €(0.2)bn cash impairment. In addition, Danone recognizes a non-cash RUB / EUR FX translation difference of approximately €(0.5)bn, which has no impact on Group’s total equity. Both will be recognized on December 31, 2023.

    EDP Russia will therefore be taken out of Danone’s like for like perimeter as of July 2023; Danone’s H2 2023 recurring performance will be reported excluding the contribution of EDP Russia.

    Danone will continue to investigate the situation to understand the implications of the decisions of the Russian authorities on the ongoing EDP operations of Danone in Russia, as well as on the ongoing sale process. Danone will continue to provide information on material developments related to the situation of its EDP operations in Russia and keeps investigating how to protect its assets and its rights as shareholder, with a first priority to ensure people safety.

    III. 2023 GUIDANCE

    Like-for-like sales growth expected between +4 and +6%, with moderate recurring operating margin improvement.

    IV. MAJOR DEVELOPMENTS OVER THE PERIOD

    • April 27, 2023: At Danone’s 2023 Annual General Meeting, shareholders approved all resolutions submitted to its approval by the Board of Directors, including the distribution of a dividend of €2.00 per share in cash, the appointment of Sanjiv Mehta as Director, the renewals of terms of office of Valérie Chapoulaud-Floquet and Gilles Schnepp, and the ratification of the co-opting of Gilbert Ghostine and Lise Kingo, as Directors.

    • May 15, 2023: Danone issued a €800 million bond with an 8-year maturity and a 3.47% coupon. The settlement took place on May 22, 2023, and the bonds are listed on Euronext Paris.

    V. NEW FINANCIAL DISCLOSURE PRO FORMA

    Financial disclosure

    Danone’s external reporting has been adjusted to reflect the organizational changes. Starting from Q1 2023, the company reports its key indicators (net sales, like-for-like sales growth, recurring operating income and recurring operating margin) along five adjusted operating segments:

    • Europe, which includes Ukraine (was previously part of Rest of the World zone);
    • North America, which includes the United States and Canada (unchanged);
    • China, North Asia, Oceania (unchanged);
    • Latin America (was previously part of Rest of the World zone);
    • Rest of the World, which includes AMEA (Asia, Middle East including Turkey, Africa) and CIS.

    The global category reporting remains unchanged, and Danone continues to report performance, on both net sales and recurring operating income and margin, for EDP, Specialized Nutrition and Waters.

    Like-For-Like definition

    All countries with hyperinflationary economies are now included in our like-for-like changes. However, in order to limit the distorting effect of hyperinflation, net sales growth in excess of around 26% per year are excluded from like-for-like net sales growth calculation in hyperinflationary economies. Indeed, a three-year average at 26% would generally trigger hyperinflation as defined by IFRS rules.

    H1 and FY 2022 sales restated by new operating segments and new LFL methodology

    H1 2022

    		EuropeNorth AmericaChina/North Asia/OceaniaAMEA, CIS & Latin AmericaTotal
    Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)
                 
    EDP2,087-0.2%2,851+6.4%166+9.6%1,958+7.9%7,062+4.7%
    Specialized Nutrition1,485+8.4%174+14.0%1,160+15.0%1,209+6.1%4,029+9.7%
    Waters859+11.4%114+18.3%345-9.9%916+14.2%2,234+8.8%
    Total Company4,431+4.7%3,139+7.2%1,671+8.3%4,083+8.6%13,325+6.9%


    FY 2022

    		EuropeNorth AmericaChina/North Asia/OceaniaAMEA, CIS & Latin AmericaTotal
    Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)Net sales (€m)LFL sales growth (%)
                 
    EDP4,137+0.6%6,085+8.1%340+12.4%4,237+8.0%14,799+5.8%
    Specialized Nutrition2,977+8.3%376+15.6%2,431+9.3%2,535+9.7%8,319+9.3%
    Waters1,757+8.5%251+19.0%656-4.4%1,879+10.2%4,543+7.5%
    Total Company8,871+4.6%6,712+8.9%3,428+6.7%8,651+9.0%27,661+7.1%

    H1 and FY 2022 margin restated by new operating segments

    Recurring operating profit (€m)
    and margin (%)

    		H1 2022FY 2022
    €mMargin (%)€mMargin (%)


    BY GEOGRAPHICAL ZONE    		       
    Europe57412.9%1,08412.2%
    North America42548.1%67910.1%
    China, North Asia & Oceania253432.0%1,03730.2%
    Latin America 3-1-0.1%551.9%
    Rest of the World2519.1%5228.9%


    BY CATEGORY    		       
    EDP4947.0%1,2078.2%
    Specialized Nutrition93323.2%1,79921.6%
    Waters1858.3%3708.2%
            
    Total1,61212.1%3,37712.2%

    VI. ALTERNATIVE PERFORMANCE MEASURES NOT DEFINED BY IFRS

    IAS 29: impact on reported data

    All necessary conditions have been reached (including 3-year cumulative rate of inflation for consumer prices exceeding the 100% threshold reached during the first half 2022) to now consider Turkey as “hyperinflationary” as defined by IFRS rules and therefore that IAS 29 rule related to Financial Reporting in Hyperinflationary Economies becomes applicable to the country. Consequently, Danone applies IAS 29 in Turkey with an effective date of January 1st, 2022.

    Adoption of IAS 29 in 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.

    IAS 29: impact on reported data
    € million except %    		Q2 2023 H1 2023 
    Sales-17.7 -54.2 
    Sales growth (%)-0.24% -0.38% 
    Recurring Operating Income  -35 
    Recurring Net Income – Group share  -72 

    Breakdown by quarter of H1 2023 sales after application of IAS 29
    H1 2023 sales correspond to the addition of:

    • Q2 2023 reported sales;
    • Q1 2023 sales resulting from the application of IAS 29 until June 30, 2023, to sales of entities in hyperinflation countries (application of the inflation rate until June 30, 2023, and translation into euros using the June 30,

    2023, closing rate) and provided in the table below for information (unaudited data).

    € millionQ1 20231Q2 2023H1 2023
    Europe2,2482,4294,677
    North America1,7141,7043,418
    China, North Asia & Oceania8249541,778
    Latin America6877791,466
    Rest of the World1,4591,3692,828
        
    Total6,9327,23514,167

    1Results from the application of IAS 29 until June 30, 2023, 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 1, 2019, and except for Turkey);
    • 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 2022Like-for-like changeImpact of changes
    in scope of consolidation     		Impact of changes in exchange rates & others incl. IAS 29Organic contribution from hyperinflation countriesReported changeH1 2023
            
    Sales13,325+8.4%-0.5%-2.9%+1.3%+6.3%14,167
    Recurring operating margin12.1%-30 bps+6 bps+39 bps-2 bps+14 bps12.2%

    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 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 of income tax related to recurring items over recurring net income before tax.

    Non-recurring share of profit of equity-accounted companies includes items that, because of their significant or unusual nature, cannot be viewed as inherent to the companies' recurring activity and thereby distort the assessment of their recurring performance and trends in that performance. These items mainly relate to (i) capital gains and losses on disposals of investments in equity-accounted companies, (ii) impairment of goodwill, and (iii) non-recurring items, as defined by Danone, included in the share of profit of equity-accounted companies.

    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 equity-accounted companies. 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 2022 H1 2023 
    Recurring Total Recurring Total 
    Net income-Group share (€ million)1,051 737 1,133 1,093 
    Coupon related to hybrid financing net of tax (€ million)(7) (7) (6) (6) 
    Number of shares        
    • Before dilution638,514,268 638,514,268 640,196,786 640,196,786 
    • After dilution638,827,268 638,827,268 640,804,805 640,804,805 
    EPS (€)        
    • Before dilution1.64 1.14 1.76 1.70 
    • After dilution1.63 1.14 1.76 1.70 

    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 2022H1 2023
    Cash-flow from operating activities9701,424
    Capital expenditure(318)(310)
    Disposal of tangible assets & transaction fees related to business combinations12210
    Free cash-flow6741,124

    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, 2022June 30, 2023
    Non-current financial debt11,238 11,162 
    Current financial debt 3,298 4,402
    Short-term investments (3,631) (3,377)
    Cash (1,051) (1,880)
    Bank Overdraft330940
    Derivatives — non-current assets1 (18) (8)
    Derivatives — current-assets1 (60) (59)
    Net debt 10,107 11,180
    • Liabilities related to put options granted to non-controlling interests — non-current
    		(59) (0) 
    • Liabilities related to put options granted to non-controlling interests and earn-outs on acquisitions resulting in control — current
    		 (263) (284)
    Net financial debt 9,785 10,896

    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 will be broadcast live today from 8:30 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 geographical zone and by category (in € million)

     First quarter Second quarterFirst Half
     202220232022202320222023


    BY GEOGRAPHICAL ZONE    		            
    Europe2,1422,2482,2892,4294,4314,677
    North America51,4771,7141,6621,7043,1393,418
    China, North Asia & Oceania27358249369541,6711,778
    Latin America36026897047791,3271,466
    Rest of the World1,2801,4861,4761,3692,7562,828


    BY CATEGORY    		          
    EDP3,3653,7683,6843,7317,0627,503
    Specialized Nutrition1,9192,1432,1062,1424,0294,250
    Waters9511,0511,2771,3622,2342,413
               
    TOTAL6,2366,9627,0677,23513,32514,167


     First quarter
    2023    		Second quarter
    2023    		First Half
    2023
     Reported changeLike-for-like changeReported changeLike-for-like changeReported changeLike-for-like change


    BY GEOGRAPHICAL ZONE    		          
    Europe+4.9%+6.2%+6.1%+6.5%+5.5%+6.4%
    North America1+16.0%+11.8%+2.5%+5.0%+8.9%+8.3%
    China, North Asia & Oceania2+12.1%+16.0%+1.9%+9.6%+6.4%+12.4%
    Latin America3+14.6%+12.6%+10.7%+10.8%+10.5%+11.7%
    Rest of the World+16.2%+11.8%-7.2%+3.9%+2.6%+7.7%


    BY CATEGORY    		         
    EDP+12.0%+9.3%+1.3%+6.2%+6.3%+7.7%
    Specialized Nutrition+11.6%+12.0%+1.7%+4.9%+5.5%+8.3%
    Waters+10.5%+12.0%+6.6%+9.6%+8.0%+10.6%
              
    TOTAL+11.6%+10.5%+2.4%+6.4%+6.3%+8.4%


    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 alternative performance measures not defined by IFRS. Their definitions, as well as their reconciliation with financial statements, are listed on pages 8 to 11.
    1United States and Canada; 2China, Japan, Australia and New Zealand; 3Mexico, Brazil, Argentina and Uruguay
    1United States and Canada; 2China, Japan, Australia and New Zealand; 3Mexico, Brazil, Argentina and Uruguay
    1United States and Canada; 2China, Japan, Australia and New Zealand
    1United States and Canada; 2China, Japan, Australia and New Zealand; 3Mexico, Brazil, Argentina and Uruguay

    Attachment


Опубликовать