DANONE: A solid set of Full-Year 2021 results; A strong finish to
the year
2021
Full-Year
ResultsPress release – Paris, February 23,
2022
A solid set of
Full-Year 2021 resultsA
strong finish to the year
-
Net sales of €24,281m in FY 2021, up
+3.4% on a like-for-like (LFL) basis and +2.8% on
a reported basis
-
Strong growth in Q4 at
+6.7% on a like-for-like basis,
and +10.9% on a reported basis
-
Return to profitable growth in H2, with
FY2021 recurring operating margin at
13.74% despite an
increasingly volatile supply and cost environment, thanks to
productivity step-up, pricing actions and mix management
-
Recurring EPS at
€3.31 in 2021, -1.1% vs
last year; €2.5bn free-cash-flow
-
Proposed dividend: €1.94 payable in
cash
-
Local First implementation
on track; Europe transformation completed
-
Capital market event to take place on March 8,
2022
|
| 2021
Full-Year Key Figures |
|
in millions of euros except if stated otherwise |
2020 |
2021 |
Reported Change |
Like-for-like(LFL) |
|
Sales |
23,620 |
24,281 |
+2.8% |
+3.4% |
|
Recurring operating income |
3,317 |
3,337 |
+0.6% |
+2.8% |
|
Recurring operating margin |
14.0% |
13.7% |
-30 bps |
-9 bps |
|
Non-recurring operating income and expenses |
(519) |
(1,080) |
(560) |
|
|
Operating income |
2,798 |
2,257 |
-19.3% |
|
|
Operating margin |
11.8% |
9.3% |
-255 bps |
|
|
Recurring net income – Group share |
2,189 |
2,165 |
-1.1% |
|
|
Non-recurring net income – Group share |
(233) |
(241) |
(7) |
|
|
Net income – Group share |
1,956 |
1,924 |
-1.6% |
|
|
Recurring EPS (€) |
3.34 |
3.31 |
-1.1% |
|
|
EPS (€) |
2.99 |
2.94 |
-1.7% |
|
|
Free cash flow |
2,052 |
2,489 |
+21.3% |
|
|
Cash flow from operating activities |
2,967 |
3,474 |
+17.1% |
|
All references in this document to Like-for-like
(LFL) changes, Recurring operating income and margin, Recurring net
income, Recurring income tax rate, Recurring EPS, Carbon-adjusted
recurring EPS, Free cash-flow, and net financial debt, correspond
to financial indicators not defined in IFRS. Their definitions, as
well as their reconciliation with financial statements, are listed
on pages 6 to 9.
Antoine de
Saint-Affrique: CEO
statement
“With Q4 sales up +6.7% on a like-for-like basis
and volumes at +0.4%, we ended the year on a strong note. This led
to FY growth of +3.4% on a like-for-like basis, underpinned by a
sound mix component. All categories contributed to this solid
performance.
We delivered on our commitment to return to
profitable growth in H2, with recurring operating margin at 13.7%
in 2021. This was enabled by a strong focus on execution and a
step-up in productivity, a pro-active approach to pricing and the
disciplined implementation of Local First.
I am grateful to all Danone employees, who have
brought in these results in unprecedented and challenging
circumstances. Their passion and commitment are, together with the
strength of our brands and the relevance of our purpose, at the
heart of our resilience.
We have, over the last months, moved forward
with determination on our transformation agenda, deploying Local
First pragmatically and strengthening key capabilities, with the
addition of globally recognized professionals in HR, Operations and
R&I to Danone’s leadership team. We still have much more to do,
and I look forward to our CME on March 8 when we will be in a
position to share more on the next steps in our growth and renewal
journey”.I. FOURTH QUARTER AND FULL-YEAR
RESULTS
Fourth quarter
and full-year sales
In 2021, consolidated sales
stood at €24.3 bn, up +3.4% on a like-for-like basis, led by +4.0%
in value and -0.6% in volume. On a reported basis, sales increased
by +2.8%, penalized by the negative impact of exchange rates that
resulted from the depreciation of currencies against the euro in
Latin America, Indonesia, Turkey, Japan and Russia (-2.0%). On the
other hand, reported sales benefited from the +0.7% organic
contribution to growth of hyperinflation geographies, as well as a
slightly positive scope effect (+0.4%), mainly resulting from the
combined effects of the integration of Harmless Harvest and Follow
Your Heart, as well as the disposal of Vega.
In the fourth
quarter, sales increased by +6.7% on a
like-for-like basis, with volume back in positive territory
(+0.4%), and value up +6.3%. Reported sales rose by +10.9%,
benefiting from the positive effect of exchange rates (+2.6%), and
the positive organic contribution of hyperinflation geographies
(+1.0%). In terms of regional dynamics, growth was broad-based in
the fourth quarter. Europe and North America grew +4.3% on a
like-for-like basis, led by the continued recovery in Waters and a
sustained solid momentum for EDP. Sales in the Rest of the World
increased by +10.0% on a like-for-like basis, driven by the
expected sequential improvement in Specialized Nutrition from the
third quarter, by strong growth in EDP, and by the Mizone and Aqua
brands’ return to positive growth.
|
€ millionexcept % |
Q42020 |
Q4 2021 |
Reported change |
LFL Sales Growth |
Volume Growth |
FY2020 |
FY2021 |
Reported change |
LFL Sales Growth |
Volume Growth |
|
BY REPORTING ENTITY |
|
|
|
|
|
|
|
|
|
|
|
EDP |
3,131 |
3,386 |
+8.1% |
+4.3% |
-0.4% |
12,823 |
13,090 |
+2.1% |
+3.7% |
+0.7% |
|
Specialized Nutrition |
1,753 |
1,931 |
+10.1% |
+6.4% |
+0.1% |
7,192 |
7,230 |
+0.5% |
+1.0% |
-3.5% |
|
Waters |
743 |
925 |
+24.5% |
+17.3% |
+4.3% |
3,605 |
3,961 |
+9.9% |
+7.2% |
+0.5% |
|
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
|
|
|
|
Europe & Noram1 |
3,252 |
3,480 |
+7.0% |
+4.3% |
+0.7% |
13,408 |
13,762 |
+2.6% |
+2.9% |
+0.7% |
|
Rest of the World |
2,376 |
2,762 |
+16.2% |
+10.0% |
+0.9% |
10,212 |
10,520 |
+3.0% |
+4.1% |
-1.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
5,628 |
6,242 |
+10.9% |
+6.7% |
+0.4% |
23,620 |
24,281 |
+2.8% |
+3.4% |
-0.6% |
1North America (Noram): United States and
Canada
Recurring Operating Margin
Danone’s recurring operating income reached €3.3
bn in 2021. Recurring operating margin stood at
13.7%,
down -30 basis points (bps) on a reported basis and -9 bps on a
like-for-like basis. The margin from operations decreased by -81
bps: input cost inflation, which had a negative impact of around
-480 bps, was partially offset by the positive impact of around
+120 bps from topline acceleration, led by mix and price, and a
step-up in productivities and other mitigation plans (around +280
bps).
A&P investments were in line with last year
in absolute value, in a context where the company maintained a
dynamic and selective resource allocation, while the positive
impact of overheads on margin was mostly driven by the first wave
of savings from Local First.
In addition to the like-for-like effects,
reported margin also includes the impacts of changes in scope (-12
bps), Forex and others (-14 bps) and organic contribution from
hyperinflation geographies (+5 bps).
|
Recurring operating profit (€m) and margin (%) |
FY 2020 |
FY 2021 |
Change |
|
€m |
Margin (%) |
€m |
Margin (%) |
Reported |
Like-for-like |
|
BY REPORTING ENTITY |
|
|
|
|
|
|
|
EDP |
1,303 |
10.2% |
1,287 |
9.8% |
-33 bps |
-37 bps |
|
Specialized Nutrition |
1,763 |
24.5% |
1,697 |
23.5% |
-105 bps |
-25 bps |
|
Waters |
251 |
7.0% |
353 |
8.9% |
+194 bps |
+189 bps |
|
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
Europe & Noram1 |
1,823 |
13.6% |
1,862 |
13.5% |
-7 bps |
+21 bps |
|
Rest of the World |
1,494 |
14.6% |
1,475 |
14.0% |
-61 bps |
-52 bps |
|
|
|
|
|
|
|
|
|
Total |
3,317 |
14.0% |
3,337 |
13.7% |
-30 bps |
-9 bps |
1North America (Noram): United States and
CanadaPerformance by reporting entity
- ESSENTIAL DAIRY AND
PLANT-BASED (EDP)
Essential Dairy &
Plant-based posted sales growth of +3.7% in 2021 on a
like-for-like basis, and recurring operating margin decreased by
-33 bps to 9.8%.
In the fourth
quarter, sales rose by +4.3% on a like-for-like
basis, reflecting a slight decline in volume (-0.4%), and an
increase of +4.7% in value. The dairy portfolio delivered sustained
solid growth while the plant-based portfolio registered solid
mid-single-digit growth amid supply challenges.
Europe &
Noram posted another quarter of solid sales
growth, with positive volumes. In Europe, sales were sustained by
the plant-based, probiotics and protein platforms, with Alpro,
Actimel and Yopro continuing to deliver exceptional growth. In
Noram, sales were driven by Oikos and Two Good in Greek yogurt,
continued momentum in Activia, and International Delight in
Creamers. Plant-based sales improved sequentially, supported by
tight management of supply and demand in a challenging environment.
Platforms in the Rest of the
World posted
strong sales growth, led by price and mix, while volumes were down.
Latin America and Africa showed further sales recovery, while in
CIS, growth was low-single-digits, led by pricing, in a still
challenging macroeconomic context.
Specialized Nutrition sales
increased by +1.0% in 2021 on a like-for-like basis and recurring
operating margin decreased by -105 bps to 23.5%.
In the fourth
quarter, sales improved sequentially, reaching
+6.4% on a like-for-like basis, with volume and value up +0.1% and
+6.3% respectively. Infant Nutrition posted very
strong growth this quarter, driven by China and the Rest of the
World. China delivered growth in the mid-teens, with resilient
market shares. Domestic labels and International Labels sold
through cross-border platforms maintained their growth and
competitiveness momentum, with notably an outstanding performance
for the Aptamil brand at 11:11, an online sales event in China.
Sales of International Labels sold through indirect cross-border
platforms (daigous, friends and family) were slightly negative on a
low base, with travel and trade with mainland China still very
limited. In Europe, category dynamics remained soft, while in the
Rest of the World sales were back to strong mid-single-digit
growth, driven by both volume and value. Sales in Adult
Nutrition were penalized in the fourth quarter by
inventory management amid supply challenges, notably in Europe.
Waters sales increased by +7.2%
in 2021 on a like-for-like basis and recurring operating margin was
up +194 bps to 8.9% despite the strong inflationary environment,
notably driven by volume recovery, improved product mix and
record-high productivity.
In the fourth
quarter, sales were up +17.3% on a like-for-like
basis, led by volumes up +4.3% and value +13.0%.
Europe posted sales growth in the mid-teens on a
like-for-like basis, closing the quarter above 2019 levels. Growth
was led by France, the United Kingdom, Germany, Spain and Poland,
where Danone brands have been gaining market shares. In the
Rest of the World, Mizone was back in positive
territory, with stable market shares. Latin America registered
another quarter of recovery, led by plain water and HOD, while
South-East Asia posted low-single-digit growth, with mobility still
under pressure but improving sequentially compared to the third
quarter.
Net income and Earnings per
share
Other operating income and
expense reached -€1,080 million vs -€519 million in the
prior year, mostly driven by the one-off implementation costs of
the Local First project and by the investments related to the
transformation of Danone’s operations. As a result, reported
operating margin was down -255 bps from 11.8% to 9.3%.
Net financial costs were down
by €49 million to -€261 million, resulting from the issuance of
bond in June 2021 at 0% coupon and from the decrease in the cost of
net debt driven by two bond reimbursements in 2020 issued at higher
interest rates. The Recurring income tax rate
stood at 27.4%, in line with the prior year. Recurring net
income from associates decreased significantly from €85
million to €7 million, reflecting the disposal of Danone’s stakes
in Mengniu and Yakult. Danone is also engaged in a disposal process
of its 20% stake in the Fresh Dairy JV with Mengniu, which is thus
classified as an asset held for sale under IFRS 5 as of December
31, 2021. Recurring minority
interests stood at €70 million, broadly in line
with the prior year.
As a result, Recurring
EPS was down -1.1% to €3.31, and Reported EPS decreased by
-1.7% to €2.94.
|
|
FY 2020 |
FY 2021 |
|
|
in millions of euros except if stated otherwise |
Recurring |
Non-recurring |
Total |
|
Recurring |
Non-recurring |
Total |
|
|
Recurring operating income |
3,317 |
|
3,317 |
|
3,337 |
|
3,337 |
|
|
Other operating income and expense |
|
(519) |
(519) |
|
|
(1,080) |
(1,080) |
|
|
Operating income |
3,317 |
(519) |
2,798 |
|
3,337 |
(1,080) |
2,257 |
|
|
Cost of net debt |
(207) |
|
(207) |
|
(167) |
|
(167) |
|
|
Other financial income and expense |
(103) |
0 |
(103) |
|
(100) |
5 |
(95) |
|
|
Income before taxes |
3,007 |
(519) |
2,488 |
|
3,070 |
(1,075) |
1,995 |
|
| Income
tax |
(828) |
66 |
(762) |
|
(841) |
252 |
(589) |
|
|
Effective tax rate |
27.5% |
|
30.6% |
|
27.4% |
|
29.5% |
|
|
Net income from fully consolidated companies |
2,179 |
(453) |
1,726 |
|
2,229 |
(822) |
1,406 |
|
| Net income
from associates |
85 |
219 |
304 |
|
7 |
578 |
585 |
|
| Net
income |
2,264 |
(234) |
2,030 |
|
2,235 |
(244) |
1,992 |
|
|
• Group share |
2,189 |
(233) |
1,956 |
|
2,165 |
(241) |
1,924 |
|
|
• Non-controlling interests |
75 |
(1) |
74 |
|
70 |
(3) |
67 |
|
|
EPS (€) |
3.34 |
|
2.99 |
|
3.31 |
|
2.94 |
|
Cash flow and Debt
Capex stood at €1,043 million, up +8.4% compared
to last year while Working Capital improved to -4.8% of Net Sales
in a context of progressive and sequential normalization of channel
mix and payment terms. Free cash flow reached
€2,489 million in 2021, up +21.3% from the prior year. The delivery
in Free Cash Flow was also positively impacted by the rephasing of
one-off cash flows related to Local First from 2021 to 2022 and
2023.
As of December 31, 2021, Danone’s net
debt stood at
€10.5
billion, down
€1.4 billion from December 31, 2020.
Dividend
At the Annual Shareholders’ Meeting on April 26,
2022, Danone’s Board of Directors will propose a dividend of €1.94
per share in cash in respect of the 2021 fiscal year, in line with
last year. Assuming this proposal is approved, the ex-dividend date
will be May 10, 2022 and dividends will be payable on May 12,
2022.
II.
CAPITAL MARKET EVENT
On the occasion of a Capital Market Event hosted
on March 8, 2022, Danone will share its vision, strategy and
priorities. The company will also take this opportunity to unveil
guidance for 2022 and for the mid-term.
III.
SUSTAINABILITY
FOOTPRINT
In 2021, Danone maintained its leadership
position in ESG by reaching top scores for several ratings and
rankings, with continued progress in each sustainability dimension.
Today, 62% of Danone’s revenue is covered by B CorpTM
certification, vs. approximately 50% last year, and the company is
fully on track to meet its 2025 goal of becoming a global B
CorpTM.
In line with its mission to bring health through
food to as many people as possible, Danone placed first in the
Product Profile ranking of the Access To Nutrition Index. This
reflects the 90% of its volume sold in healthy categories1 (for the
third year in a row) and the 83% of volumes sold without added
sugar2.
The company has been awarded a AAA score by CDP
for the third consecutive year, highlighting its progress in the
fight against climate change, in forest preservation and in water
security. In its journey to reach Net-Zero across its full value
chain in 2050, Danone reduced its GreenHouse Gas (GHG) emissions by
0.8 million tons CO2 eq. compared to 2020 on a like-for-like basis,
totaling in 2021 24.7 million tons CO2 eq., with more than 0.35
million tons CO2 eq. reduction linked to the roll-out of
regenerative agriculture initiatives within Danone’s supply-chain.
Overall and on a like-for-like basis, Danone has reduced its full
scope GHG emission intensity3 by 27.1%4 since 2015.
Danone continues to disclose a carbon-adjusted
recurring EPS evolution that takes into account an estimated
financial cost for absolute GHG emissions across its entire value
chain5. Carbon-adjusted recurring EPS grew by +2% to reach €1.97 in
2021.
As regards the circular economy, 84% of Danone’s
packaging is now recyclable, reusable or compostable, vs. 81% in
2020.
On inclusive diversity, Danone was recognized
for the fourth time in a row as one of the 418 companies in the
2022 Bloomberg Gender-Equality Index, which recognizes companies
committed to transparency in gender reporting and advancing women’s
equality. Danone is also committed to supporting employees who need
to acquire new skills. In 2020, the Company worked with the IUF to
develop an innovative approach called “FutureSkills”, designed to
better prepare employees who need new skills for the jobs of
tomorrow. In 2021, the program was fully deployed6.
IV.
SHARE BUYBACK
Danone has terminated its existing share buyback
program announced on July 29, 2021. The Company repurchased an
aggregate market value of €800 million in the second half of
2021.
V. MAJOR DEVELOPMENTS
OVER THE PERIOD
Governance and leadership
changes
- December
10, 2021: Valérie
Chapoulaud-Floquet was appointed to join Danone’s Board of
Directors from March 1, 2022, replacing Isabelle Seillier who
decided to step down for personal reasons from December 31, 2021.
This was a first step in Danone’s overhaul of its Board of
Directors, which will lead the Company to renew the totality of its
Board of Directors by 2023 – except for the positions held by the
Chairman, the Chief Executive Officer and the two Directors
representing Employees.
- January 6, 2022:
Danone completed its leadership team with three appointments at
Executive Committee level: a Chief Operations Officer (Vikram
Agarwal, starting in January 2022); a Chief Research, Innovation,
Quality and Food Safety Officer (Isabelle Esser, starting in April
2022); and a Chief Sustainability and Strategic Business
Development Officer (Henri Bruxelles, starting in January 2022).
These three globally recognized professionals – two from outside
Danone and one internal – complete the leadership team and
represent an important step in strengthening Danone’s execution and
innovation, over the short and long-term.
Major financial
transactions
- November
2, 2021: Danone successfully issued a €700 million
bond with a 9-year maturity and a 0.52% coupon. The settlement took
place on November 9, 2021 and the bonds are listed on Euronext
Paris.
- November 16, 2021:
Danone announced it has agreed to sell Aqua d’Or, its Water and
Beverage business in Denmark, to Royal Unibrew, a Denmark-based
brewing and beverage company. This sale was part of Danone’s
strategic portfolio review and the continuous optimization of its
capital allocation.
VI. FINANCIAL
STATEMENTS
At its meeting on February 22, 2022, the Board
of Directors closed statutory and consolidated financial statements
for the 2021 fiscal year. Regarding the audit process, the
statutory auditors have substantially completed their examination
of financial statements as of today.
VII.
IFRS STANDARDS AND FINANCIAL INDICATORS NOT DEFINED IN
IFRS
IAS 29: impact on reported
data
Danone has been applying IAS 29 in
hyperinflation countries as defined in IFRS. Adoption of IAS 29 in
these hyperinflationary countries requires its non-monetary assets
and liabilities and its income statement to be restated to reflect
the changes in the general pricing power of its functional
currency, leading to a gain or loss on the net monetary position
included in the net income. Moreover, its financial statements are
converted into euros using the closing exchange rate of the
relevant period.
|
IAS 29: impact on reported data €
million except % |
Q4 2021 |
|
FY 2021 |
|
|
Sales |
2.6 |
|
67 |
|
|
Sales growth (%) |
+0.04% |
|
+0.28% |
|
|
Recurring Operating Income |
|
|
(33) |
|
|
Recurring Net Income – Group share |
|
|
(46) |
|
Breakdown by quarter of 2021 sales after
application of IAS 29FY 2021 sales correspond to the addition
of:
- Q4 2021
reported sales;
- Q1, Q2 and Q3
2021 sales resulting from the application of IAS 29 until December
31, 2021 to sales of entities of hyperinflation countries
(application of the inflation rate until December 31, 2021 and
translation into euros using December 31, 2021 closing rate) and
provided in the table below for information (unaudited data).
|
€ million |
Q1 20211 |
Q2 20212 |
Q3 20213 |
Q4 2021 |
FY 2021 |
|
EDP |
3,165 |
3,265 |
3,275 |
3,386 |
13,090 |
|
Specialized Nutrition |
1,723 |
1,797 |
1,780 |
1,931 |
7,230 |
|
Waters |
795 |
1,127 |
1,114 |
925 |
3,961 |
|
|
|
|
|
5 |
|
|
Total |
5,683 |
6,189 |
6,168 |
6,242 |
24,281 |
1Results from the application of IAS29 until
December 31, 2021 to Q1 sales of entities of hyperinflation
countries. 2Results from the application of IAS29 until December
31, 2021 to Q2 sales of entities of hyperinflation
countries.3Results from the application of IAS29 until December 31,
2021 to Q3 sales of entities of hyperinflation countries.
Financial indicators not defined in
IFRS
Due to rounding, the sum of values presented may
differ from totals as reported. Such differences are not
material.
Like-for-like changes in sales,
recurring operating income and recurring operating margin reflect
Danone's organic performance and essentially exclude the impact
of:
- changes in
consolidation scope, with indicators related to a given fiscal year
calculated on the basis of previous-year scope, both previous-year
and current-year scopes excluding entities in countries under
hyperinflation according to IAS 29 during the previous year (as for
Argentinian entities since January 1st, 2019);
- changes in
applicable accounting principles;
- changes in
exchange rates with both previous-year and current-year indicators
calculated using the same exchange rates (the exchange rate used is
a projected annual rate determined by Danone for the current year
and applied to both previous and current years).
Bridge from reported data to
like-for-like data
|
(€ million except %) |
FY 2020 |
Impact of changesin scope of
consolidation |
Impact of changes in exchange rates and others, including
IAS29 |
Organic contribution from hyperinflation
countries |
Like-for-like growth |
FY 2021 |
|
|
|
|
|
|
|
|
|
Sales |
23,620 |
+0.4% |
-1.6% |
+0.7% |
+3.4% |
24,281 |
|
Recurring operating margin |
14.0% |
-12 bps |
-14 bps |
+5 bps |
-9 bps |
13.7% |
Recurring operating income is
defined as Danone’s operating income excluding Other operating
income and expenses. Other operating income and expenses comprise
items that, because of their significant or unusual nature, cannot
be viewed as inherent to Danone’s recurring activity and have
limited predictive value, thus distorting the assessment of its
recurring operating performance and its evolution. These mainly
include:
- capital gains
and losses on disposals of fully consolidated companies;
- impairment
charges on intangible assets with indefinite useful lives;
- costs related
to strategic restructurings or transformation plans;
- costs related
to major external growth transactions;
- costs related
to major crisis and major litigations;
- in connection
with of IFRS 3 (Revised) and IAS 27 (Revised) relating to business
combinations, (i) acquisition costs related to business
combinations, (ii) revaluation profit or loss accounted for
following a loss of control, and (iii) changes in earn-outs
relating to business combinations and subsequent to acquisition
date.
Recurring operating margin is
defined as Recurring operating income over Sales ratio.
Other non-recurring financial income and
expense corresponds to financial income and expense items
that, in view of their significant or unusual nature, cannot be
considered as inherent to Danone’s recurring financial management.
These mainly include changes in value of non-consolidated
interests.
Non-recurring income tax
corresponds to income tax on non-recurring items as well as tax
income and expense items that, in view of their significant or
unusual nature, cannot be considered as inherent to Danone’s
recurring performance.
Recurring effective tax rate
measures the effective tax rate of Danone’s recurring performance
and is computed as the ratio income tax related to recurring items
over recurring net income before tax.
Non-recurring results from
associates include items that, because of their
significant or unusual nature, cannot be viewed as inherent to the
recurring activity of those companies and thus distort the
assessment of their recurring performance and its evolution. These
mainly include (i) capital gains and losses on disposal and
impairment of Investments in associates, and (ii) non-recurring
items, as defined by Danone, included in the net income from
associates.
Recurring net income (or
Recurring net income – Group Share) corresponds to the Group share
of the consolidated Recurring net income. The Recurring net income
excludes items that, because of their significant or unusual
nature, cannot be viewed as inherent to Danone’s recurring activity
and have limited predictive value, thus distorting the assessment
of its recurring performance and its evolution. Such non-recurring
income and expenses correspond to Other operating income and
expenses, Other non-recurring financial income and expenses,
Non-recurring income tax, and Non-recurring income from associates.
Such income and expenses, excluded from Net income, represent
Non-recurring net income.
Recurring EPS (or Recurring net
income – Group Share, per share after dilution) is defined as the
ratio of Recurring net income adjusted for hybrid financing over
Diluted number of shares. In compliance with IFRS, income used to
calculate EPS is adjusted for the coupon related to the hybrid
financing accrued for the period and presented net of tax.
|
|
FY 2020 |
|
FY 2021 |
|
|
Recurring |
|
Total |
|
Recurring |
|
Total |
|
|
Net income-Group share (€ million) |
2,189 |
|
1,956 |
|
2,165 |
|
1,924 |
|
|
Coupon related to hybrid financing net of tax (€ million) |
(15) |
|
(15) |
|
(26) |
|
(26) |
|
|
Number of shares |
|
|
|
|
|
|
|
|
|
• Before dilution |
649,331,592 |
|
649,331,592 |
|
646,155,699 |
|
646,155,699 |
|
|
• After dilution |
649,968,844 |
|
649,968,844 |
|
646,445,829 |
|
646,445,829 |
|
|
EPS (€) |
|
|
|
|
|
|
|
|
|
• Before dilution |
3.35 |
|
2.99 |
|
3.31 |
|
2.94 |
|
|
• After dilution |
3.34 |
|
2.99 |
|
3.31 |
|
2.94 |
|
Carbon-adjusted recurring EPS is defined in the
methodological note in the chapter 5.8 of the Universal
Registration Document.
Free cash flow represents cash
flows provided or used by operating activities less capital
expenditure net of disposals and, in connection with IFRS 3
(Revised), relating to business combinations, excluding (i)
acquisition costs related to business combinations, and (ii)
earn-outs related to business combinations and paid subsequently to
acquisition date.
|
(€ million) |
FY 2020 |
FY 2021 |
|
Cash-flow from operating activities |
2,967 |
3,474 |
|
Capital expenditure |
(962) |
(1,043) |
|
Disposal of tangible assets & transaction fees related to
business combinations1 |
47 |
58 |
|
Free cash-flow |
2,052 |
2,489 |
1 Represents acquisition costs related to business combinations
paid during the period.
Net financial debt represents the net debt
portion bearing interest. It corresponds to current and non-current
financial debt (i) excluding Liabilities related to put options
granted to non-controlling interests and earn-outs on acquisitions
resulting in control and (ii) net of Cash and cash equivalents,
Short term investments and Derivatives – assets managing net
debt.
|
(€ million) |
December 31, 2020 |
December
31, 2021 |
|
Non-current financial debt |
12,343 |
12,537 |
|
Current financial debt |
4,157 |
4,048 |
|
Short-term investments |
(3,680) |
(5,197) |
|
Cash and cash equivalents |
(593) |
(659) |
|
Derivatives — non-current assets1 |
(259) |
(120) |
|
Derivatives — current-assets1 |
(27) |
(91) |
|
Net debt |
11,941 |
10,519 |
- Liabilities related to put options granted to non-controlling
interests — non-current
|
(7) |
(76) |
- Liabilities related to put options granted to non-controlling
interests and earn-outs on acquisitions resulting in control —
current
|
(355) |
(280) |
|
Net financial debt |
11,579 |
10,163 |
1 Managing net debt only
o o O o o
FORWARD-LOOKING STATEMENTS
This press release contains certain
forward-looking statements concerning Danone. In some cases, you
can identify these forward-looking statements by forward-looking
words, such as “estimate”, “expect”, “anticipate”, “project”,
“plan”, “intend”, “objective”, “believe”, “forecast”, “guidance”,
“foresee”, “likely”, “may”, “should”, “goal”, “target”, “might”,
“will”, “could”, “predict”, “continue”, “convinced” and
“confident,” the negative or plural of these words and other
comparable terminology. Forward looking statements in this document
include, but are not limited to, predictions of future activities,
operations, direction, performance and results of Danone.
Although Danone believes its expectations are
based on reasonable assumptions, these forward-looking statements
are subject to numerous risks and uncertainties, which could cause
actual results to differ materially from those anticipated in these
forward-looking statements. For a detailed description of these
risks and uncertainties, please refer to the “Risk Factor” section
of Danone’s Universal Registration Document (the current version of
which is available at www.danone.com).
Subject to regulatory requirements, Danone does
not undertake to publicly update or revise any of these
forward-looking statements. This document does not constitute an
offer to sell, or a solicitation of an offer to buy Danone
securities
The
presentation to analysts and investors will be broadcast live today
from 9:00 a.m. (Paris time) on Danone’s website
(www.danone.com).
Related slides will also be available on the website in the
Investors section.
APPENDIX – Sales by reporting entity and
by geographical area (in € million)
| |
First quarter |
Second quarter |
Third quarter |
Fourth quarter |
Full Year |
| |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
|
BY REPORTING ENTITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EDP |
3,364 |
3,149 |
3,238 |
3,254 |
3,108 |
3,269 |
3,131 |
3,386 |
12,823 |
13,090 |
|
Specialized Nutrition |
1,949 |
1,719 |
1,792 |
1,793 |
1,698 |
1,777 |
1,753 |
1,931 |
7,192 |
7,230 |
|
Waters |
928 |
790 |
925 |
1,125 |
1,015 |
1,112 |
743 |
925 |
3,605 |
3,961 |
|
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe & Noram1 |
3,469 |
3,273 |
3,352 |
3,510 |
3,334 |
3,498 |
3,252 |
3,480 |
13,408 |
13,762 |
|
Rest of the World |
2,772 |
2,384 |
2,602 |
2,661 |
2,486 |
2,660 |
2,376 |
2,762 |
10,212 |
10,520 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
6,242 |
5,657 |
5,954 |
6,171 |
5,821 |
6,158 |
5,628 |
6,242 |
23,620 |
24,281 |
| |
First quarter 2021 |
Second quarter 2021 |
Third quarter 2021 |
Fourth quarter 2021 |
Full Year 2021 |
|
| |
Reported change |
Like-for-like change |
Reported change |
Like-for-like change |
Reported change |
Like-for-like change |
Reported change |
Like-for-like change |
Reported change |
Like-for-like change |
|
|
BY REPORTING ENTITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EDP |
-6.4% |
+1.6% |
+0.5% |
+4.8% |
+5.2% |
+4.1% |
+8.1% |
+4.3% |
+2.1% |
+3.7% |
|
Specialized Nutrition |
-11.8% |
-7.7% |
+0.1% |
+2.8% |
+4.6% |
+2.9% |
+10.1% |
+6.4% |
+0.5% |
+1.0% |
|
Waters |
-14.9% |
-11.6% |
+21.6% |
+19.5% |
+9.6% |
+4.6% |
+24.5% |
+17.3% |
+9.9% |
+7.2% |
|
BY GEOGRAPHICAL AREA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe & Noram1 |
-5.6% |
-2.8% |
+4.7% |
+6.4% |
+4.9% |
+3.9% |
+7.0% |
+4.3% |
+2.6% |
+2.9% |
|
Rest of the World |
-14.0% |
-4.2% |
+2.3% |
+6.9% |
+7.0% |
+3.7% |
+16.2% |
+10.0% |
+3.0% |
+4.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
-9.4% |
-3.3% |
+3.6% |
+6.6% |
+5.8% |
+3.8% |
+10.9% |
+6.7% |
+2.8% |
+3.4% |
1North America (Noram): United States and
Canada
1 In operational terms, ‘healthy product
categories’ for Danone refers to packaged water, yogurts, milks and
other daily dairy products, daily plant-based products, beverages
with 0% sugar, and specialized nutrition products (except the
following early life nutrition products: foods for children over 3
years old as well as biscuits and beverages for children under 3
years old).The remaining categories are mainly low sugar beverages
and indulgent products.2 All volumes in the One Health Scorecard,
only excluding plant-based products and adult medical nutrition.3
Grams of CO2 equivalent per kilo of products sold
4 The data is based on a constant consolidation
scope and a constant methodology. The GreenHouse Gas protocol
defines three scopes for carbon footprint assessment: Scope 1
covers direct emissions from equipment that is company-owned or
under the operational control of Danone, scope 2 refers to indirect
energy emissions related to the generation of electricity, steam,
heat or cold purchased and consumed by Danone and scope 3 covers
all indirect emissions due to Danone's activities, including
emissions from raw materials used, the transport and distribution
of products, the use and the end-of-life of products. For more
information, please refer to the chapter 5 of Danone Universal
Registration Document.5 Carbon-adjusted recurring EPS is equal to
the recurring EPS less an estimate financial cost for carbon /
number of shares after dilution. Please refer to the methodological
note in the chapter 5.8 of the Universal Registration Document for
more details on the calculation of the carbon-adjusted recurring
EPS.6 All subsidiairies with eligible people have proposed the
program to our social partners, or directly to employees.
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