"In the past nine months, we have a lot to learn about how to deal with the epidemic." Fan Yimou, CEO and Chairman of Danone, announced that in order to adapt to the epidemic, the company's organizational structure and brand portfolio implementation will be changed, and the strategic plan to adapt to the new environment will be accelerated.
10 10 On October 20th, Danone, a French food giant with brands such as Rehai, Pulsating and Evian, announced its third quarter results this year: the sales revenue during the period reached 582,654.38 billion euros, down 2.5% year-on-year, but it was in line with expectations. Among them, the sales of professional special nutrition section where milk powder is located is 65.438+69.8 million euros, down 5.7% year-on-year. In the China market, there has been a double-digit decline in this field, mainly because the procurement and cross-border electronic commerce channels have been greatly affected.
Danone continues to increase its investment in China this year.
The epidemic forced the company to make major strategic adjustments and cut some products.
The outbreak of global epidemic has changed the strategic deployment of many multinational companies. Danone, an international food giant, is no exception.
In terms of organizational structure, Danone Group has appointed two regional CEOs, who will be responsible for Danone's international business and North American business respectively, and are committed to the coordinated development of different categories of the company to maximize the company's performance, ensure excellent overall operation level and achieve high-quality business development in various regions.
At the same time, HenriBruxelles was appointed as Chief Operating Officer to lead the newly established strategic department, which integrates R&D with innovation, product cycle and procurement, operation and quality management, and is responsible for end-to-end business from product design to delivery. This department will play an important role in promoting company transformation.
In terms of brand, sales unit and assets, conduct a comprehensive strategic evaluation to ensure that the profit growth target of 3%-5% is achieved. This means that Danone plans to "clean up" its products and intends to concentrate its resources on bigger brands. In Fan Yimou's view, the reduction of products is not only because of the limited supply chain under the epidemic, but also because of the changes in the market.
In addition, Danone will speed up the formulation of a strategic plan to adapt to the new environment to cope with the impact and challenges brought by the epidemic. It is reported that the plan will be implemented in the first quarter of 20021year. Fan Yimou said that Danone has gained a lot from this epidemic: local empowerment is king, it has achieved extreme agility at competitive cost in supply chain and customer service, the growth opportunities of existing categories and other consumer-centered categories, the transfer of structural channels such as e-commerce, and the strength of having a trustworthy brand with deep tradition and local relevance.
Purchasing and cross-border channels blocked Danone milk powder sales in China fell by double digits.
According to the latest financial report, the sales of the professional special nutrition section where milk powder is located in the third quarter was 65.438+69.8 million euros, down 5.7% year-on-year. Among them, in the China market, sales in the third quarter dropped by double digits. The financial officer of Danone explained that this was mainly because the comparative base was relatively high last year, which increased by more than 20% in China in the same period last year. "The unfavorable factors affecting the China market are also related to channel logistics, which is caused by the contraction and destocking of cross-border channels caused by the epidemic."
Cross-border channels have been greatly affected by the epidemic this year.
It is reported that due to the continuous closure of ports in Europe, Oceania and China, China's cross-border early life nutrition business declined by 60% in the third quarter. These channels include indirect channels such as purchasing, and the income accounts for 40% of Danone's infant nutrition business in China.
Faced with the uncertainty of the epidemic, Danone has little confidence in the recovery of milk powder purchasing.
However, the milk powder business of direct channels performed well. At present, direct marketing channels account for about 60% of Danone's milk powder business in China, including modern trade channels, maternal and child stores and e-commerce. "This channel performed relatively well in the third quarter, and the market share of Altair and Nuoyouneng both increased".
In the China beverage market, the sales of Pulse improved in the third quarter, and the year-on-year decline narrowed. However, the fluctuating market share has not returned to the normal level.
Looking forward to 2020, Danone predicts that the annual recurring operating profit rate will be 65,438+04%, and it will have free cash flow of 6,543,808 billion euros. Editor in charge: