Danone under pressure from rising costs

DECRYPTION – The dairy giant expects inflation to accelerate on its supplies.

Five weeks after taking office as CEO of Danone, files are piling up for Antoine de Saint-Affrique. While investors hoped that the bulk of the rise in costs had passed to consumer manufacturers, the giant of dairy products, water and specialized nutrition somewhat dampened their hopes on Tuesday, believing that the situation would still be tricky next year. “Where inflation mainly concerned the cost of raw materials, it has become widespread and now affects our entire supply chain”, Juergen Esser, Danone’s chief financial officer, detailed Tuesday during a quarterly activity update. Above all, the latter expects a “Widespread acceleration in the price inflation of milk, ingredients, packaging and logistics costs”. With rising costs “At least 8%” in 2022. That is to say as much as the year which is ending.

If Danone, who managed to pass

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