Key insights
- Danone's CEO warns that a prolonged conflict involving Iran could lead to higher food prices globally. Uncertainty surrounding the duration and intensity of the conflict creates macroeconomic headwinds. While the company is not raising prices yet, the situation is being closely monitored. Higher food prices could contribute to broader inflationary pressures, potentially impacting consumer spending and equity valuations.
Investing.com -- Danone CEO Antoine de Saint-Affrique told CNBC that inflationary pressure from the Iran war may lead to higher food prices as the outlook for conflict in the Middle East remains highly uncertain.
When asked if the company would raise prices, de Saint-Affrique said "we are not there yet."
"Nobody knows when [the war] is going to stop, and depending how the next two to four weeks are going to evolve, the outcome from a macroeconomic standpoint, is going to be very, very different," he told CNBC's Charlotte Reed.
Access breaking news faster with institutional-grade feeds on InvestingPro — get 50% off.
The conflict in the Middle East has now entered its sixth week, with U.S. President Donald Trump turning up the tone on Iran over the weekend to reopen the Strait of Hormuz. The president earlier today reiterated that Iran has until 8 p.m. Eastern time to reopen the strategically important strait where normally a fifth of global oil supply passes through.
"If it lasts for long enough, it will have an impact," de Saint-Affrique added.
While acknowledging the macroeconomic uncertainty and headwinds ahead, the CEO remained optimistic about his company's ability to be resilient amid macroeconomic headwinds.
"This is the time where you need to keep investing behind the brands," he said.
"People are focusing, so either you're relevant, or you're not relevant. This is time for us to keep focusing on what makes us different, what makes us unique, and what brings value for the consumer."