Danone drops as analysts fume over non-standard reporting practice
Zurich — Danone shares fell after the world’s largest yogurt-maker reported the third consecutive quarterly drop in volume and irked analysts by saying it will include this month’s $10bn takeover of WhiteWave Foods in its like-for-like sales figures for 2017. The stock declined as much as 2.8% to €61.91 in Paris, even after the maker of Activia yogurt raised its forecast for profit growth this year. By immediately incorporating WhiteWave into its like-for-like sales reporting, Danone is deviating from standard practice of doing so after the first 12 months of a takeover. Some analysts said the decision obscures the performance of Danone’s dairy business and shows the company isn’t confident in the sales outlook. "Amalgamating reporting of the two from day one in organic growth does Danone no favours," Gerry Gallagher, an analyst at Deutsche Bank, wrote in a note. "We believe it will only make the market question why it should own the stock." In addition to including WhiteWave in lik...
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