SUBSCRIBE

Breaking News on Supplements, Health & Nutrition - Europe US edition | APAC edition

News > Suppliers

Read more breaking news

 

 

Danone records sales growth despite European demand deterioration

By Mark Astley , 27-Jul-2012

Danone records H1 sales growth despite falling Europan demand

Danone has warned of continued “rapid deteriation” in consumer demand in Southern Europe, despite reporting global sales growth of 5.9% for H1 2012.

The French dairy giant recorded global sales of €10.475bn for the first half of the year – a 5.9% increase on the €9.7bn achieved in H1 2011.

Weak dairy product consumer demand in Spain and other Southern European countries resulted in flat growth in Western Europe region, which recorded sales of €5.548bn.

The firm’s results were, however, bolstered by double digit sales growth in Asia and the rest of the world – regions that now account for 65% of Danone’s turnover.

Sales in the fast emerging Asian market (€1.762bn) increased by 18.2% compared with H1 2011. While sales from the rest of the world hit €3.165bn for the first half of the year - an 11.7% increase

Tough consumer environment

“The consumer environment definitely got tougher in Europe, particularly Southern Europe in the first half of this year,” said the firm’s H1 results statement.

Last month, the firm issued a profit warning for 2012 – reducing its operating margin target to account for the collapse of dairy consumption in Spain and other Southern European countries.

Danone has attributed the fall in consumption to the growing rate of unemployment in the country caused by the current Eurozone crisis.

“At Danone we moved quickly to manage this new situation in line with our strategic priorities: strengthening our brands and pursuing sustainable, profitable growth. Our first-half organic growth in sales stands at nearly 6%, in line with our full-year objectives,” said the statement.

“In the United States and Russia, our Oikos and Prostokvashino brands are continuing to expand rapidly.”

Emerging market growth

The firm has also pushed on with efforts to increase its presence in emerging markets such as China, India and North Africa. Some have labelled this an effort to prop up weak European demand.

“In emerging markets, we are continuing to grow at a very brisk pace and are expanding our presence, as we did recently in Morocco and India,” the statement added.

Danone entered into an agreement last month, which if completed, will see it become the majority shareholder in Morocco’s leading dairy firm – Centrale Latiére. And yesterday, it completed its acquisition of Wockhardt Group’s nutrition business – marking its entry into the Indian baby food and adult nutrition market.

Live Supplier Webinars

Polyphenols tipped to become the way to innovate in Sports Nutrition
Fytexia
Orally bioavailable standardized botanical derivatives in sport nutrition: special focus on recovery in post-intense physical activities
Indena
Collagen in motion: move freely and keep your injuries in check
Leading manufacturer of gelatine and collagen peptides
Life’s too short for slow proteins. Whey proteins hydrolysates: Fast delivery for enhanced performance
Arla Foods Ingredients
What it Takes to Compete and Win in Today’s Sports Nutrition Market
Capsugel
Sports Nutrition Snapshot: Key regional drivers and delivery format innovations
William Reed Business Media
Gutsy performance: How can microbiome modulation help athletes and weekend warriors
William Reed Business Media
Pushing the boundaries: Where’s the line between ‘cutting edge nutrition’ and doping
William Reed Business Media
Alpha & Omega in Sports Nutrition – Using Omega 3’s and A-GPC to improve performance and recovery.
KD Pharma

On demand Supplier Webinars

High-amylose maize starch may reduce the risk of type 2 diabetes: what does this qualified health claim mean?
Ingredion
Balancing Innovation and Risk in Sports Nutrition Ingredients
NSF-International
Explaining bio-hacking: is there a marketing opportunity for food companies?
William Reed Business Media
Personalized Nutrition – how an industry can take part in shaping the future of Nutrition
BASF Nutrition & Health
Find out Nutritional and ingredient lifecycle solutions and strategies!
Roquette
Is the time rIpe for I-nutrition?
William Reed Business Media
The Advantage of Outsourcing Fermentation-based Manufacturing Processes
Evonik Health Care
All supplier webinars