Under fire Danone warns of tough start to the year 

Danone employs around 700 people in its baby food business in Ireland, across operations in Macroom, Wexford and Dublin.

Dairy and baby food giant Danone has said it expects to return to profitable growth in the second half of 2021 after a tough first quarter, as it doubled down on a turnaround plan criticised as too slow by some investors.

Danone employs around 700 people in its baby food business in Ireland, across operations in Macroom, Wexford and Dublin.

Group chairman and chief executive Emmanuel Faber has come under growing pressure as activist shareholders push for management changes to lift returns which have lagged those of some rivals during the Covid-19 pandemic.

Mr Faber acknowledged that Danone’s share price — which is at seven-year lows — “is not where we would like it to be”. 

There was no word on governance changes however, and the group said it would provide more details on strategy at an investor day on March 25.

Asked whether he would be open to splitting the chairman and CEO roles, which some shareholders have urged, Mr Faber said he was “not dogmatic” on the issue.

US investment firm Artisan Partners, which said it has a stake of over 3% in the Activia yoghurt maker, has urged the company to sell underperforming brands like Asia water label Mizone, and shake up its governance.

Activist investor Bluebell, which has not disclosed its holding, has called on Mr Faber to step down.

In recent months Mr Faber had intensified actions to ward off activist investors, announcing in November a plan to cut 2,000 jobs, trim product ranges and sell some assets.

Mr Faber has pursued a strategy centred on diversifying into fast-growing products featuring probiotics, protein and plant-based ingredients to mitigate slower growth in dairy.

• Reuters and Irish Examiner