The dynamics of international strategy
Danone has a strong balance sheet, with low debt and adequate liquidity to support its expansion plans. The company reported a net debt position of €0.77 billion in 2020 and €14.19 billion in equity investments, which provides an adequate cushion for financing activities as needed. In terms of challenges that could impact growth, Danone CEO Emmanuel Faber has noted heightened pricing pressures due to increased competition from private-label offerings and ongoing softening macroeconomic conditions across certain markets representing potential headwinds going forward. Additionally, rising demand for plant-based alternatives may pose a challenge for the dairy products on which Danone relies heavily for revenue growth.