In its 2020 earnings report published on February 19, Danone announced that its sales revenue fell 1.5%to 23.6 billion euros last year, and its earnings per share increased 1%year-on-year to 2.99 EUR.
Although the epidemic has disrupted sales in some channels and affected the performance of specialized special nutrition and drinking water and beverage businesses, the sales of basic dairy products and plant-based products The steady growth was resumed last year; in the fourth quarter of last year, the specialty special nutrition business also continued to improve in all regions.
When talking about Danone’s performance in 2020, Fan Yimou, chairman and CEO of Danone, first expressed his respect for the tireless efforts of 100,000 Danone employees.
he said:“The COVID-19 pandemic has caused us to encounter short-term challenges in many key categories and regions; but it is clear that we have also discovered significant long-term opportunities. These opportunities All exist in Danone’s strategic framework and the category portfolio we have selected in the past few years.”
Fan Yimou said that 2021 will be a year of recovery.”Our focus at this stage is to strive to resume sales revenue growth as soon as the second quarter of this year. We are fully confident to create appropriate conditions, grasp the positive development momentum, and return to the track of achieving profitable growth goals as soon as possible in the second half of the year.” /span>
In 2020, the sales revenue of basic dairy products and plant-based products will increase by 3.4%year-on-year, of which basic dairy products will achieve low-single-digit growth, and plant-based products will increase by 15%year-on-year , Increased from 1.9 billion euros in 2019 to 2.2 billion euros last year.
In 2020, the sales revenue of professional special nutrition business will drop slightly by 0.9%year-on-year, and the recurring operating profit margin will drop by 74 basis points to 24.5%.
In China, the domestic sales channel business resumed growth in the fourth quarter. This was mainly due to the outstanding performance of Atami products, which was in the”Double Eleven” During the period, the sales ranked ahead and gained more market share in the fourth quarter. On the other hand, although the business of the cross-border sales channel has improved compared to the previous month, it is still severely affected by continued border epidemic prevention measures and travel restrictions.
The sales revenue of drinking water and beverage business decreased by 16.8%year-on-year, and the recurring operating profit margin fell to 7.0%. In the fourth quarter, Pulse’s sales in the Chinese market achieved positive growth. Considering that China’s travel situation has not yet returned to the level before the new crown epidemic, this performance is encouraging.
In terms of environmental protection, Danone’s carbon emissions in 2020 will be reduced by 1 million tons compared with 2019, and 50%of the emissions reductions are due to Danone’s regeneration The agricultural plan also reduced the carbon cost of earnings per share last year by 4.1%.
Looking forward to 2021, Danone is expected to return to the growth track in the second quarter and resume profitable growth in the second half of the year. The annual recurring operating profit margin is expected to be roughly in line with 2020.
Following the release of the third quarter results in October last year, Danone launched major business reshaping measures in order to achieve convergence with mid-term goals such as profitable growth.
They specifically include:First, strengthen brand portfolio advantages and differentiation through investment, optimize execution, reshape organizational structure, and conduct strategic evaluation of business portfolio; second, Use the 1 billion euro cost saving plan to increase support for innovation and brand development; third, increase the supervision of management’s implementation of the plan.