Danone announces strategic review of its portfolio

Danone, the food-products company, reported that 3Q revenue fell 9.3% on year (-2.5% like-for-like) to 5.82 billion euros and 9-month revenue was down 5.4% (-1.6% like-for-like) to 18.00 billion euros. The company said it is conducting a full strategic review of its portfolio brands, "starting with an immediate review of its strategic options for Argentina, for Vega brand, and possibly further assets".

In addition, the group has set a medium-term objective of 3 to 5% profitable growth and has presented its new objectives for the current year, namely a current operating margin of 14% and free cash flow of 1.8 billion euros.

From a chartist’s point of view, the stock price remains capped by its declining 50-day simple moving average and is pushing below a key horizontal support at 54E. The breakout confirmation of this support would open a path to see 52.2E and 50.3E (March low). Alternatively, a push above 56E would call for a short term recovery towards 58.5E and 60.9E.

Source: GAIN Capital, TradingView

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