Danone delivered stronger-than-expected sales growth in the last quarter of 2021 despite a challenging environment marked by mounting inflation, even as the yoghurt maker's new chief said much remained to be done to turn the company around, Trend reports with reference to Reuters.
Antoine de Saint-Affrique, who took over as chief executive of the French group in September, said on Wednesday investors would have to wait until the March 8 Capital Market Day for clues on his strategy and outlook for 2022 and the mid-term.
Consumer goods companies are grappling with surging costs for commodities, energy, transport and labour, prompting rival Unilever earlier this month to warn of a drop in margins as it struggles to lift prices enough to offset the extra expenses. read more
While Danone "ended the year on a strong note ... We still have much more to do, and I look forward to our CME on March 8 when we will be in a position to share more on the next steps in our growth and renewal journey," Saint-Affrique said in a statement.
By 0801 GMT, shares in the French group were up 2.4% at 55.88 euros after the sales beat, which was driven largely by a continuing recovery in its bottled water business as countries relaxed COVID restrictions.
"Q4 is ahead on the top line with FY 21 margins in line. The question remains one of whether new CEO Antoine de Saint-Affrique will take a margin reset, or not," Jefferies analysts said in a note.