Danone - Q1 2019 – consistent message on growth delivery despite a slow start

Davy Research
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Despite a slow start, Danone CFO Cécile Cabanis struck a resolute tone on the Q1 call – its valorisation strategy continues to play out with Q1 2019 marking the seventh successive quarter of value growth. The fulcrum for growth in FY2019 is an anticipated rebound in its EDP division. Danone continues to adapt and deliver in a complex environment, where profitable growth is hard earned. On balance, we believe the risk/reward equation is improving. We expect to nudge up our FY2019 revenue growth (although still sub-3%) and margin assumptions.