How Does Danone’s (ENXTPA:BN) Cold Storage Expansion Reflect Its Long-Term Supply Chain Priorities?

• ARGAN and Danone recently began construction on a new 8,200 sq.m Aut0nom® logistics facility in Sorigny, France, featuring 6,400 sq.m of positive cold storage and on-site green energy capabilities.
• This expansion doubles Danone's logistics capacity in the Greater West of France and demonstrates the company's ongoing commitment to sustainable, responsible supply chain practices.
• We'll explore how Danone's investment in energy-efficient logistics infrastructure aligns with its broader growth and sustainability narrative.

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Danone Investment Narrative Recap

Danone's appeal comes from its ongoing push into healthier, functional nutrition categories and its scale in both developed and emerging markets. The new green logistics facility in Sorigny aligns with Danone's sustainability goals, but it is unlikely to change the key near-term business catalyst: accelerating category innovation and operational turnaround in core dairy, where ongoing challenges in markets like North America remain the biggest risk to watch.

Among recent developments, Danone's July 2025 acquisition of Kate Farms stands out, expanding its medical nutrition portfolio. This move is highly relevant to Danone's broader efforts to diversify beyond traditional dairy and grow higher-margin, health-focused segments, priorities that echo the importance of innovation highlighted by its new logistics investment.

Yet, despite supply chain advances, investors should be aware that ongoing execution issues and leadership uncertainty in key markets still...

Read the full narrative on Danone (it's free!)

Danone's outlook anticipates €29.9 billion in revenue and €2.7 billion in earnings by 2028. This scenario is based on 3.0% annual revenue growth and a €0.9 billion increase in earnings from the current €1.8 billion.

Uncover how Danone's forecasts yield a €76.01 fair value, in line with its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community range widely, with figures from €42.30 up to €105.56. While these viewpoints reflect differing outlooks, ongoing operational risks in major markets could still weigh on Danone’s longer-term results, consider all these perspectives when reviewing your own investment approach.

Explore 6 other fair value estimates on Danone - why the stock might be worth as much as 36% more than the current price!

Build Your Own Danone Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Danone research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Danone research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Danone's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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