Report
Philip Gorham, CFA, FRM
EUR 101.80 For Business Accounts Only

Impressive Margin Expansion Shows Thesis on Danone Is Intact, Though Growth Is Slowing

Despite some headwinds in China, it was clear from Danone’s fourth-quarter results that our margin expansion thesis is firmly intact. The firm achieved 70 basis points of consolidated EBIT margin expansion in 2016 on just 2.9% organic sales growth, which is evidence of the profitability improvement opportunities ahead. We are reiterating our narrow moat rating and our EUR 71 fair value estimate, and we still believe Danone is an underappreciated margin expansion story.
Organic growth slowed sequ...
Underlying
Danone S.A. ADS

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

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.

We have operations in 27 countries.

Analysts
Philip Gorham, CFA, FRM

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