There is a controversy about Danone that it will end its Medical Nutrition business. According to the rumors, Danone, which is the largest yoghurt maker in the whole world, will sell its smallest business to gather cash for acquisition purposes. However, just this Friday, the company decided to clear all the speculations by telling that they are going to continue their Medical Nutrition division.
According to the company, its Medical Nutrition division, though it is their smallest business, was a key and essential part to the company’s growth strategy.
According to Emmanuel Faber, who is the Chief Executive of Danone, each of the core businesses of the company, including Early Life Nutrition, Waters, Fresh Dairy Products and Medical Nutrition, has an important role to play in the business. This just implies that they are not planning to sell any of its businesses.
Laurent Sacchi, the board secretary of the company, told Reuters that they are definitely keeping the Medical Nutrition business. Upon this statement, all the speculations that scattered regarding Danone’s plan to sell their smallest business unit has been cleared.
Currently, Danone slightly made changes on its financial goals. This is because the company would be towards the low end of the past target range.