Danone (XPAR:BN, Financial), a leader in the food processing industry, operates through divisions, such as fresh dairy products, waters, early life nutrition and medical nutrition. The company enjoys the leading market share position in the vast majority of its markets and earns mid-teens operating margins, an attractive return on capital employed and excellent cash conversion rates, in our opinion. A management change in March 2020 should enable the company to improve its operational performance by prioritizing sound corporate governance principles that align with long-term shareholders.
From David Herro (Trades, Portfolio) and Bill Nygren (Trades, Portfolio)'s Oakmark Global Select Fund second-quarter 2021 letter.
