Danone will stick to its initial growth estimates for 2022 but is keeping an eye on inflation, its new CEO says.
Speaking to stock analysts, Antoine de Saint-Affrique, who came from Barry Callebaut to head Danone in September, said that it’s too early for the French food giant to “formulate a credible path forward,” but that he would give details of a turnaround strategy early next year.
Danone’s sales for the third fiscal quarter rose 3.8% over the third quarter of last year, to 6.16 billion euros ($7.2 billion). The growth was slightly higher than analysts expected but represented a slowdown from the 6.6% growth rate of the second quarter.
Inflationary pressures on Danone reached 8% for 2021 so far and are expected to worsen next year, Danone’s finance chief said.
“What started as increased inflation on material costs evolved into widespread constraints impacting our supply chain in many parts of the world," Juergen Esser told Reuters.
