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.”

Diet, Food

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.