Danone sticks to 2021 return-to-profit-growth target

Posted a 3.3% fall in first quarter sales

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

Danone has stuck to its goal of returning to profitable growth in the second half of this year, after posting a 3.3% fall in first quarter sales, as Covid lockdowns continued to dent its bottled water and baby food sales.

The French dairy and food group — which employs around 700 people across its baby food business in Cork, Dublin, and Wexford — is searching for a new CEO and said it is banking on a gradual reopening of economies from the second half of this year as Covid vaccines are rolled out.

Former boss Emmanuel Faber was abruptly ousted as chairman and CEO last month following clashes with some board members over strategy and calls from activist funds for him to resign over the group’s lacklustre returns compared with some rivals.

Danone did not elaborate on its search for a new CEO but said it would pay “careful attention to ensuring a proper transition”. 

It said previously that it was looking for an external candidate after appointing a duo to manage operations in the interim period.

The company also said it would continue with board-backed changes set in motion by Mr Faber to reorganise Danone around regional hubs rather than brands under a “Local First” plan.

It reiterated its expectations for a return to like-for-like sales growth in the second quarter and for a full-year 2021 operating margin broadly in line with the 14% achieved in 2020.