Danone appoints CEO and splits powers of top management jobs

Danone has split its chairman's dual roles, appointing Emmanuel Faber to chief executive while Franck Riboud remains chairman as the world's biggest yogurt maker combats falling profit.

The separation of the positions will help pave the way for "a smooth succession," Paris-based Danone said in a statement. As part of the reshuffle, Danone ended Bernard Hours' mandate as co-chief operating officer, a position he has held jointly with Faber since 2007. A Danone spokeswoman was not available for comment.

Riboud is facing pressure to reorganise and seek businesses with better growth prospects amid declining earnings and falling volume of dairy products. In July, Danone denied a report that the company had started a portfolio review while analysts at Natixis have said the firm's performance makes it vulnerable to a takeover.

"Many will take it positively that Riboud is stepping down as CEO, but less so that the new CEO isn't really new blood, and that Riboud's powers as chairman have increased," said James Targett, an analyst with Berenberg. "Although in reality we think little has changed, it will probably be taken as a positive."

Faber has worked alongside Riboud since 1997. In that time, he has played "a critical role in making and deploying all major decisions", Riboud said in the statement. "I want to ensure that Danone has everything it needs to lay the groundwork for its future."

Riboud's responsibilities as chairman will be expanded, allowing him to work alongside Faber on "major issues" and to represent Danone with leading shareholders, the company said.