Danone CEO touts new strategy, focuses on science-based health mission

As a result, the Paris-based multinational, known for its yogurt, bottled water, dairy- and plant-based products and specialized nutrition brands, expects to post like-for-like sales growth of 3% to 5% during that time and for recurring operating income growth to exceed net sales. Danone reported total 2023 sales of €27.619 billion ($29.84 billion), a 7% like-for-like increase and at the top end of its guidance for last year.

At a June 20 investor day in Amsterdam, Antoine de Saint-Affrique, chief executive officer, described today’s Danone as being very different from the Danone of two years ago, and that its “renew strategy” will project the company into the future of health and nutrition where the role food plays in health will become more critical.

In his investor day presentation, de Saint-Affrique said health and nutrition are more intertwined than ever, and that changes in the ways consumers eat, age and live are structural tailwinds for Danone. He called the company’s “cutting-edge science” a unique asset that can bridge health and consumer goods across categories, giving the examples of gut and microbiome and the protein space.

Danone has gone through a “radical transformation” in the past two years and is much stronger today than the company consumers used to know, de Saint-Affrique said. During the period, Danone went through a “deep and very public governance crisis” and a significant restructuring and was viewed by some as both underperforming and unreliable, he said.

On de Saint-Affrique’s watch, Danone has, among other initiatives, partnered on precision fermentation, launched a line of dairy and dairy snacks, acquired a feeding tube company and may look for further acquisitions in the medical nutrition category.

He noted at the investor day that the two-year “cultural reset” at Danone has been broad and deep and included renewal of the board with a combination of industry knowledge and seniority complimented by expertise in health, nutrition and sustainability. In addition, half of the executive committee has been changed and includes talent from both inside and outside the company, he said.

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