Danone tops H1 forecasts | Progresiv
Danone has reported better-than-expected growth for its fiscal first half, as cost control and price hikes helped boost sales at its dairy division. 
Sales were up 3.8% on an organic basis to 11.05 billion euros (-3% reported), with recurring operating profit up 11.5% to 1.48 billion (+7% reported). The results were helped by a strong second quarter, which saw organic sales growth of more than 4%.
For the half, the Fresh Dairy division saw sales grow by 2.6% on an organic to 5.38 billion euros, although volumes declined by 2.1%. The Waters division reported a 3.2% increase in sales to 2.39 billion euros, with volumes up 5.9%. The Early Life Nutrition division saw a 6% rise in sales to 2.5 billion, with volumes growing by 1.6%. And the Medical Nutrition division chipped in with a 6.8% increase in sales to 787 million euros, as volumes rose by 4.7%.
CFO Cecile Cabanis said the group was “fully on track to deliver on our 2020 goals”, but did not change the full-year forecasts. Cabanis said Danone was helped by the relaunch of the Danonino and Actimel brands in Europe, adding that it will now relaunch the Activia brand. (www.kamcity.com)
