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Danone's Transformation Strategy Likely To Deliver 'Significant Cost Savings': Moody's

Published on Mar 25 2021 8:57 AM in A-Brands tagged: Featured Post / Trending Posts / Brands / Danone / Moody's / Paywall

Danone's Transformation Strategy Likely To Deliver 'Significant Cost Savings': Moody's

Danone's transformation strategy is likely to deliver 'significant' cost savings and boost sales, however it also carries a high execution risk, Moody's has said.

According to the ratings firm, the three-year strategy, which was announced last November, will require structural and cultural change, with high restructuring costs of €1.4 billion likely to curb cash flow generation.

Danone is targeting €1 billion of cost savings by 2023, with two-thirds of these savings set to be made by the end of 2022. It will seek to obtain €300 million in logistics efficiencies and €700 million in general and administrative costs, reducing its headcount in both local and global offices by between 1,500 and 2,000.

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