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Jul 29 2019, 06:00 IST/BST
Danone’s interim result was notable in so far as it simultaneously lifted gross and EBIT margin – a dynamic that was absent in FY17 and FY18. The out-turn impressed in the context of mid-single-digit input cost inflation (gross) – further evidence of ‘New Danone’ in action. Our model implies that Danone will exit 2019 with an organic growth run-rate of c.4%. The net result is a c.1-2% EPS upgrade to FY19 and FY20 forecasts. With strengthening revenue momentum and confidence on margin attainment, we see further upside.