Danone profits up sharply despite consumer downturn
French food group Danone said its first-half underlying net profit jumped 15.8 per cent to 701 million euros (1.1 billion dollars), bucking gloomy expectations on consumer spending as the economy slows.
By Agencies |
PARIS: French food group Danone said its first-half underlying net profit jumped 15.8 per cent to 701 million euros (1.1 billion dollars), bucking gloomy expectations on consumer spending as the economy slows.
Danone said its first-half operating profit rose to 1.18 billion euros from 890 million euros, on sales of 7.69 billion euros, up 9.6 per cent.
This gave an operating margin of 15.30 per cent, up from 13.67 per cent a year earlier and a gain of 35 basis points on a like-for-like basis.
Danone said it now expected its full-year margin to rise by 0.40 to 0.50 percentage points on this comparison, compared with its previous target for an increase of at least 0.30 percentage points.
The group also confirmed its guidance for full-year like-for-like sales growth of between eight per cent and 10 per cent, and growth of at least 15 per cent in underlying net profit.
"In those markets where we have recently started to witness softness in consumer spending, our teams have already put all the necessary wheels in motion to be able to make the necessary adjustments and accelerate innovations programmed to ensure and strengthen the competitive advantage of the Group and its brands," Danone said a statement. After the results, Danone shares were up 4.12 per cent at 48.43 euros while the broard market was down 0.56 per cent.
Danone said its first-half operating profit rose to 1.18 billion euros from 890 million euros, on sales of 7.69 billion euros, up 9.6 per cent.
This gave an operating margin of 15.30 per cent, up from 13.67 per cent a year earlier and a gain of 35 basis points on a like-for-like basis.
Danone said it now expected its full-year margin to rise by 0.40 to 0.50 percentage points on this comparison, compared with its previous target for an increase of at least 0.30 percentage points.
The group also confirmed its guidance for full-year like-for-like sales growth of between eight per cent and 10 per cent, and growth of at least 15 per cent in underlying net profit.
"In those markets where we have recently started to witness softness in consumer spending, our teams have already put all the necessary wheels in motion to be able to make the necessary adjustments and accelerate innovations programmed to ensure and strengthen the competitive advantage of the Group and its brands," Danone said a statement. After the results, Danone shares were up 4.12 per cent at 48.43 euros while the broard market was down 0.56 per cent.
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