Heavily penalized by the health crisis and the consequences of the closure of bars and restaurants, this world agri-food issue has chosen to review its entire strategy. Under pressure, the title is cheap and can be played with a capped bonus.
Danone has started to transform. Faced with the consequences of the health crisis and the poor performance of its bottled water division, which was heavily penalized by the “out-of-home” sector, ie bars, restaurants and hotels, but also a disappointing trend in the third quarter in specialized nutrition , this world number two in the food industry has chosen to review its strategy from top to bottom without any taboos. At the human level, the CFO, Emmanuel Faber’s right-hand man, has decided to hand over the task and a vast departure plan associated with measures to optimize the cost structure should make it possible to achieve savings of 1 billion per year. he horizon 2023. At the same time, Danone must be more agile and its reorganization has been completely redesigned and will now be structured by major geographic areas and no longer by business. Finally, a review of the brand portfolio will be carried out with a view to refocusing the group on the most dynamic and profitable ones. The objective is to allow Danone to resume growth of 3% to 5% per year in its turnover, with a current operating margin of at least 16%. The site is colossal and will take time before delivering its first positive effects. Disappointed in recent quarters, the market is waiting to judge on the spot. This is why the stock remains under pressure despite discounted valuation levels of respectively 15.8 times the estimated profits for this year, 15.1 times those for 2021 and 13.9 times those for 2022.
Reimbursed at maximum 69 euros
The best way to ensure a gain in value without taking too much risk is to position yourself on a Danone capped bonus. The one selected is issued by Société Générale with a deadline of June 25, 2021 and two terminals located at 45 euros for the lowest and 69 euros for the highest. Let us remember how this type of certificate works: it will be reimbursed at maturity at its bonus level of 69 euros, provided that Danone shares do not fall below the lower limit of 45 euros by then. Given its purchase price, it is likely to deliver a gain of 16% in just over six months. For a controlled risk, since in the worst-case scenario where Danone shares actually cross the lower limit of 45 euros for the certificate, it will still be reimbursed on June 25, 2021 during the action. Except that the investor will not receive the dividends paid by the company to its shareholders and will not be able to remain exposed to a rebound by Danone above the bonus level of 69 euros which constitutes the maximum redemption price.
Our advice: buy a Danone capped bonus issued by Société Générale (code: FRSGE001AQS9); deadline: June 26, 2021; terminals: 45/69 euros; parity: 1 share for 1 certificate; price: 59.47 euros; amount: 1