Weakness in Dairy Takes the Gloss Off Another Strong Performance in Formula for Danone in 2Q
Our second-quarter revenue estimates proved too optimistic for Danone, as weakness in the international dairy business and unfavourable currency weighed on the firm's performance. On the other hand, the baby food business was again very strong. We reiterate our EUR 71 fair value estimate and narrow economic moat rating, and we think there is limited upside to Danone from these levels.Danone's second-quarter organic growth rate of 3.3% is a sequential slowdown from the 4.9% posted in a particula...
Danone is engaged in activities in the global food and beverages industry. Co. operates in four markets: Fresh Dairy Products (Co. produces and sells yogurts, fermented dairy products and other fresh dairy products); Waters (Co. produces and sells natural waters as well as flavored and vitamin-enriched waters products); Early Life Nutrition (Co. produces baby formula, milk-and fruit-based desserts, cereals, small pots of baby food and ready-made baby food); and Medical Nutrition (Co. develops adult and pediatric clinical nutrition products to be taken orally, or through a catheter in the event of malnutrition related to illness or other causes).
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Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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