Danone SA (ADR) (OTCMKTS:DANOY) closed at the end of the last trading session with a small gain of 0.94% but the final closing price of the day at $14.01 came lower than the opening price of $14.08, creating a negative body despite a new swing high at $14.12. The volume of the day at 640,000 against the daily average of 342,000 also included some shares coming from a bout of profit booking. In the short term, due to the overbought state, a correction can’t be ruled out and even the bulls may welcome it for further strength.


Danone SA (ADR)(OTCMKTS:DANOY) consolidated sales in 3Q2015 jumped 4.2% to €5,641 million over the same quarter, a year ago. This organic growth highlights a 0.8% increase in sales volume and almost 4% rise in value. The exchange-rate impact results from unfavorable movement in currencies, including the Brazilian real and the Russian ruble, as expected. Changes in the extent of consolidation resulted in a limited impact of -0.2% and were recorded in large portion from Fresh Dairy Product sale businesses in Indonesia in December 2014.

The expert view

Emmanuel Faber, the CEO of Danone, said that robust organic sales growth of more than 4% in 3Q2013 confirms company’s advancement towards sustainably securing a balanced profitable growth plan for Danone. In Europe, the Fresh Dairy Products segment continues its adaptation, with continued improvements in the performance of major brands including Danette, Actimel and Activia. The other segment also continues to boast solid trends, with strength of Waters with Volvic and evian.

In North America, Danone progressively recorded growth return in Dairy. In the CIS, the company continues to adapt business model, achieving positive results. In ALMA, the environment continues to be unstable and performance differs from one nation to another. They are actively transitioning ‘Mizone’ brand in China noting a lower pattern of category segment.

The highlights

Danone stated that they have long created innovative positions in the long-term prospective beverage and food categories. As the company projects to move forward in a persistently volatile market, the priority of the Danone teams and Executive Committee will remain to achieve profitable growth while improving the resilience of overall business model.

Danone expects economic conditions to remain unstable and difficult overall, with deflationary or fragile consumer trends in Europe. The emerging markets will remain undermined due to volatile currencies, and there would be issues specific to major markets.