Danone has hailed its policy of seeking greater volumes at reduced margins after the French dairy giant posted a double-digit rise in first-half profits.
Surging demand in Asia and other developing markets helped sales for the period grow by almost 7% on a like-for-like basis to €8.4bn (£7bn). Operating profits for the past six months were up by 10%, the Activia maker said, to €848m (£707.4m).
Danone finance director Pierre-André Terisse, finance director said “the effect of the price reset [was] long-lasting and delivering good growth”.
Although Danone was cautious over potential sales growth in Europe, which stood at just 1.7% for the first half of the year, the company’s progress further afield meant the group upped its 2010 growth forecast from 5% to 6%.
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First-quarter volumes surge at Activia maker Danone (15 April 2010)