Mayar Capital: “Danone (DANOY)’s Turnaround Continues”

Mayar Capital, an asset management firm, published its second-quarter 2022 investor letter – a copy of which can be downloaded here. For the three months ending March 31, 2021, Mayar Fund (Class A) was down 6.6% net of all expenses and fees, while the MSCI World Index declined by 5.2% in the same period. Since its inception in May 2011, Mayar Fund has seen a 198.7% increase versus a 180.9% increase for the MSCI. That corresponds to a 10.6% annualized rate of return for the Mayar Fund, compared to 10.1% for the MSCI. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Mayar Capital mentioned Danone S.A. (NYSE:DANOY) and explained its insights for the company. Founded in 1919, Danone S.A. (NYSE:DANOY) is a Paris, France-based multinational food-products corporation with a $35.2 billion market capitalization. Danone S.A. (NYSE:DANOY) delivered a -10.98% return since the beginning of the year, while its 12-month returns are down by -26.17%. The stock closed at $11.03 per share on August 17, 2022.

Here is what Mayar Capital has to say about Danone S.A. (NYSE:DANOY) in its Q2 2022 investor letter:

“Danone’s turnaround continues, despite cost inflation of 8% last year. Its planned 20% reduction in stock-keeping units (SKUs) was completed in the year and coincided with a EUR 800 million share buyback programme. However, the highly profitable Chinese baby formula business had a mixed year, with grey- market imports of formula through the informal ‘Daigou’ sales channel decreasing as cross-border travel collapsed; more positively, management commentary at the end of the year suggests that this dynamic is slowing down.”

Photo by Louis Hansel on Unsplash

Our calculations show that Danone S.A. (NYSE:DANOY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Danone S.A. (NYSE:DANOY) was in 2 hedge fund portfolios at the end of the second quarter of 2022, compared to 3 funds in the previous quarter. Danone S.A. (NYSE:DANOY) delivered a -4.00% return in the past 3 months.

In July 2022, we also shared another hedge fund’s views on Danone S.A. (NYSE:DANOY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.