Danone (BN FP) France
Consumer Staples
An Iron Blue score of 27/60 (+2 Y/Y) is top quartile (fertile ground for shorting). Red flags include: 1) Industry leading use of stripped out restructuring and other one-off costs. 2) A change in the calculation behind the headline LFL sales growth metric to now include hyperinflationary countries (Turkey, Argentina & Iran) up to 26% p.a. 3) A seeming mismatch between bad debtor provisions at a decade low and overdue receivables at a decade high. 4) Reduced disclosure around the goodwill impairment test inputs. 5) Additional risks commentary re. Russian operations (5% of 2022 group sales).
Edition: 159
- 28 April, 2023
The future is on our plate
Against the background of a growing world population, our food system is considered unfit for purpose as it entails unsustainable or socially unacceptable environmental, animal and health costs. Agriculture and the food industry are responsible for about a quarter of global greenhouse gas emissions, largely because of animal farming. What is more, diets are biased towards animal fats, which have potentially detrimental health effects. Piers Nestler looks at the possible implications for the industry as he tries to identify beneficiaries from a transition to alternative proteins. Companies discussed BASF, Bayer, Biotalys, Danone, GEA, Kerry Group, KWS Saat and Vilmorin.
Edition: 141
- 05 August, 2022