Danone said today it was launching a review of its assets and reshaping its management to better cope with challenges stemming from the coronavirus pandemic.
The world's largest yoghurt maker is already looking at strategic options for €500m worth of assets in Argentina and for North American plant-based brand Vega.
It said it aimed to "rapidly reconnect" with its goal to deliver mid-term like-for-like sales growth of 3-5%.
The consumer giant, owner of Evian and Badoit water and the Activia and actimel yoghurt brands also reinstated its forecasts for 2020, targeting a 14% recurring operating margin and €1.8 billion of free cash flow.
Danone posted a 2.5 % drop in like-for-like third quarter sales, slightly worse than analysts expectations of a 2.2% decline.
It said a fall in out-of-home consumption due to the pandemic continued to hit sales of its bottled waters division and travel restrictions in Asia weighed on its specialised nutrition sales in China.
Chairman and CEO Emmanuel Faber has had a strategy centered on diversifying the group's portfolio into fast-growing products featuring probiotics, protein and plant-based ingredients to mitigate slower growth in dairy.
Danone shares have lost 25.3% so far this year, lagging a 2% gain for archrival Nestle.
