Danone has posted marginal sales growth of 0.4% in the first six months of the year, according to its recently published financial report.
In the second quarter of the year, the International dairy company's consolidated sales stood at €6,664 million, up 0.2% on a like-for-like basis, reflecting a 2.1% decline in volume and a 2.3% rise in value.
According to Emmanuel Faber, CEO, Danone "As expected, the slow start of the year is the result of specific emerging markets’ headwinds and challenges in Europe and in North America, balanced with significant successes in developing sustainable platforms in specialised nutrition in China, and growing young and local dairy brands in Europe."
Danone's dairy and plant-based operations reported a drop in sales of 1.8% in the second quarter of 2017, as a result of a 4.8% decline in volume and 3% rise in value.
In Europe, Danone made investments in its Activia brand, with changes to packaging and local communication campaigns.
Looking ahead to 2017, Danone anticipates that economic conditions for the rest of the year will remain uncertain overall, with an increase in the cost of strategic raw materials, and a steep rise in milk prices. The company priorities for the rest of the year include improving margins, strengthening its growth model, and promoting strategic opportunities.
"The very strong improvement in margin and EPS growth this semester again bodes well for our ability to reach our objectives for the year, with expected growth acceleration in the course of the second half," said Faber.
© 2017 - Checkout Magazine by Donna Ahern