| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 69.94 | 6 |
| Intrinsic value (DCF) | 38.65 | -41 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 23.14 | -65 |
Danone S.A. (BSN.DE) is a global leader in the food and beverage industry, specializing in dairy, plant-based products, specialized nutrition, and bottled water. Headquartered in Paris, France, Danone operates across Europe, North America, Latin America, the Asia Pacific, Africa, and the Middle East. The company's diversified portfolio includes well-known brands such as Activia, Alpro, Aptamil, evian, and Volvic, catering to health-conscious consumers through products like yogurt, plant-based alternatives, infant nutrition, and fortified beverages. Danone's business is segmented into Essential Dairy & Plant-Based, Specialized Nutrition, and Waters, ensuring a balanced exposure to growing health and wellness trends. With a strong distribution network spanning retail chains, e-commerce, and healthcare channels, Danone maintains a resilient presence in the consumer defensive sector. The company’s commitment to sustainability and 'One Planet. One Health' initiatives further enhances its brand equity in an increasingly eco-conscious market.
Danone presents a stable investment opportunity within the consumer defensive sector, supported by its diversified product portfolio and global footprint. The company’s focus on health-oriented and sustainable products aligns with long-term consumer trends, providing resilience against economic downturns. However, Danone faces margin pressures from rising input costs and competitive pricing in the dairy and plant-based segments. Its net income of €2.02 billion (FY 2024) and operating cash flow of €3.83 billion reflect solid profitability, though high total debt (€14.8 billion) warrants monitoring. The dividend yield (~2.5%) and low beta (0.39) suggest lower volatility, appealing to income-focused investors. Challenges include intense competition from larger peers like Nestlé and local brands in emerging markets.
Danone’s competitive advantage lies in its strong brand recognition, particularly in dairy and specialized nutrition (e.g., Aptamil, Nutricia), and its early-mover position in plant-based alternatives (Alpro). The company’s global distribution network and focus on health-centric innovation (e.g., probiotics, hypoallergenic formulas) differentiate it from generic competitors. However, Danone lags behind giants like Nestlé in scale and R&D budgets, limiting its ability to dominate emerging categories like functional beverages. In bottled water, brands like evian and Volvic face stiff competition from Coca-Cola’s smartwater and PepsiCo’s Aquafina. Regional players (e.g., China’s Mengniu) also challenge Danone’s pricing power in Asia. While Danone’s sustainability initiatives bolster its ESG appeal, execution risks in margin improvement and debt management remain key hurdles.