DANONE S/ADR - DANOY STOCK NEWS

Danone successfully completed a €500 million hybrid bonds refinancing on September 15, 2021. The tender offer involved repurchasing €500 million of its existing €1.25 billion subordinated notes at 103.118% of their tender price. This reduces the outstanding principal of the existing notes to €750 million. Alongside this, Danone issued new subordinated notes of €500 million with a 1% coupon, maturing in 2026. The company aims to manage its hybrid debt effectively, maintaining the total amount unchanged while leveraging favorable market conditions.

Danone has successfully priced a €500 million issue of undated deeply subordinated fixed rate resettable notes, capitalizing on favorable market conditions. The proceeds will refinance part of its existing €1.25 billion notes. The new notes carry a fixed coupon of 1% and will be recognized as equity under IFRS standards. Settlement is scheduled for 16 September 2021, with listing on Euronext Paris. This strategic move aligns with Danone's efforts to optimize its capital structure and financial flexibility.

On September 7, 2021, Danone announced plans to refinance part of its €1.25 billion hybrid bond amid favorable market conditions. The company launched a Tender Offer to repurchase up to €500 million of its existing undated deeply subordinated notes. Additionally, Danone intends to issue new Euro-denominated undated non-call 5.25-year notes, expected to have ratings of BBB- (S&P) and Baa3 (Moody’s). The Tender Offer will run from September 7 to September 14, 2021, with results to be announced on September 15, 2021.

Danone has disclosed its total voting rights and shares in accordance with French regulations. As of July 31, 2021, the company had 687,640,000 shares in circulation. The total number of theoretical voting rights stands at 713,938,148, while the total number of exercisable voting rights is 677,500,248. This information is crucial for stakeholders to understand shareholding thresholds and voting power.

Danone has made its interim financial report for the six months ending June 30, 2021, publicly available. The company generated €23.6 billion in sales in 2020, focusing on health-oriented food and beverage categories. Danone, listed on Euronext Paris and the OTCQX market, aims for B Corp™ certification by 2025 and has set nine 2030 Goals to enhance sustainability. The company is recognized in various sustainability indexes and markets with over 100,000 employees and products sold in 120 markets.

On July 28, 2021, Danone's Board of Directors announced a comprehensive renewal program aimed at enhancing the company’s governance. This follows the earlier decision to separate the roles of Chairman and CEO, appointing Gilles Schnepp as Independent Chairman and Antoine de Saint-Affrique as CEO, effective September 15, 2021. The Board will undergo significant changes by 2023, with several Directors choosing not to renew their mandates. The upcoming Shareholders’ Meetings will propose new candidates to maintain a diverse and independent Board.

Danone reported a return to growth in Q2 2021 with net sales of €6,171 million, up +6.6% like-for-like. The first half of 2021 saw total sales of €11.8 billion, a +1.6% increase. Recurring operating margin declined to 13.1% due to inflation and category mix challenges. Reported EPS rose +5.1% to €1.63, while recurring EPS fell -9.3% to €1.53. Free cash flow reached €1.0 billion, and a share buyback program of up to €800 million is planned for H2. 2021 guidance remains optimistic for profitable growth despite ongoing macroeconomic uncertainties.

The press release from Danone provides essential information regarding the company's shareholding structure as of June 30, 2021. The total number of shares is reported at 687,640,000, with a total of 713,725,685 theoretical voting rights. The exercisable voting rights stand at 676,901,433. This announcement complies with Article L. 233-8 II of the French Commercial Code and the AMF regulations, ensuring transparency in shareholder voting rights. The company continues to adhere to legal requirements while informing stakeholders about its governance structure.

Danone has signed an agreement to sell its plant-based nutritional products brand, Vega, to WM Partners, a US-based private equity firm. This sale is part of Danone's strategy for capital allocation optimization and follows a portfolio review initiated in October 2020. The transaction's closing is contingent on customary conditions.