FDBusiness.com

Transformation Underway at Danone

 Breaking News
  • World’s Most Modern Snack Plant Begins Operations in Finland The world’s most modern dairy snack plant has commenced operation at Valio Riihimäki in Southern Finland. The snack plant is the largest single investment in Valio’s history. Construction of the new snack plant began in 2014 and took about three years. The area of the plant building is approximately 20,000 square metres. The plant is [...]...
  • FrieslandCampina Sells Fruit Juice Business The Dutch investment company Standard Investment is acquiring Riedel, the fruit juice business of FrieslandCampina, for an undisclosed sum. Based at Ede in the Netherlands, Riedel has a turnover of about €125 million and employs 200 people. Completion of the transaction is expected before the end of 2017. Earlier this year, FrieslandCampina announced that it would [...]...
  • LacPatrick is Cream of the Crop in UAE LacPatrick, the international dairy co-operative, has secured over £1 million of sales of its LP spray dried whole milk and skimmed milk powder in the United Arab Emirates (UAE), following participation at the Gulfood exhibition in February 2017. LacPatrick is one of Northern Ireland’s major manufacturing employers, employing over 300 staff across its Ballyrashane, Artigarvan [...]...
  • Tate & Lyle Launches CLARIA® Instant Functional Clean-Label Starches Tate & Lyle, a leading global provider of food ingredients and solutions, has announced a further expansion of its line of CLARIA® Functional Clean-Label Starches with the introduction of two new instant starch products: CLARIA® Instant 340 and 360. As claims such as ‘smooth’, ‘luscious’ and ‘velvet’ continue to grow, manufacturers are eager to develop textures [...]...
  • Reveal Impact – Ardagh Group to Launch a Two-Stage Thermochromic Solution Reveal Impact features combined temperature-sensitive inks with a twist. The new solution for aluminium cans uses two different thermochromic inks, which both boast the same colour when cooled down. However, once the can gets warmer again, one colour disappears quicker than the other, revealing a hidden message to the consumer. The revealed message surprises the [...]...
  • HKScan Opens New €80 Million Poultry Plant HKScan, the Nordic meat group, has just opened its new, state-of-the-art poultry unit at Rauma in Finland. Valued at over €80 million, the new facility is the largest investment in HKScan’s history. Indeed, the state-of-the-art Rauma unit ranks among the most significant investments in the history of the Finnish food industry. Jari Latvanen, president and chief [...]...

Transformation Underway at Danone

Transformation Underway at Danone
February 24
15:45 2016

Danone has delivered a 4.4% organic rise in sales to €22.41 billion for 2015 with trading operating income up 5.7% to €2.89 billion with operating margin improving by 17 bps on a like-for-like basis for 2015.

The results mark the start of a recovery for the French food group following a tough year in 2014, when it reported a fall in sales and trading margins. Danone has been restructuring its European Fresh Dairy Products business to regain its competitive edge and to adjust to the new trading environment and also reviewing its business model in China.

“Over the past 18 months, we have been making the changes necessary to take up the challenges of a new and ever changing world, as we pursue our purpose to provide pleasurable, healthier, sustainable hydration and eating options to our consumers each and every day,” says Emmanuel Faber, who became chief executive in October 2014, with a mission of returning Danone to “strong profitable and sustainable growth” by 2020. “With organic growth of +4.4% and trading operating margin up +17 basis points like-for-like, our results are very solid and perfectly aligned with our objectives. They confirm that we have taken this mission to a new level, paving the way for strong, profitable and sustainable growth by 2020.”

Emmanuel Faber, CEO of Danone.

Emmanuel Faber, CEO of Danone.

Danone’s Fresh Dairy Products business, which accounts for almost half of total sales, increased sales on a like-for-like basis by 0.6% to €11.057 billion in 2015 and started to reap the rewards of the restructuring with trading operating margin improving by 24 bps to 9.95%. Benefiting from the popularity of its international brands Aptamil and Nutrilon and strong demand in China, the Early Life Nutrition business increased like-for-like sale by 9.8% to €4.99 billion as trading operating margin rose 142 bps to 19.32%.

In China, Danone is pushing ahead with efforts to build a sustainable model of growth by continuing to invest in the Aptamil and Nutrilon brands, and by forging a structure for its local internet offering using a direct distribution model, while developing sales through specialized stores.

DanoneLogoHe adds: “In 2016, in a global context that remains volatile, Danone will continue to invest behind its brands and will mark a further important step to develop a balanced model of strong, profitable and sustainable growth.”

Danone is projecting organic sales growth of 3% to 5% and a further solid improvement in trading operating margin for 2016 as it benefits from further cost reduction, continuing improvement in its European dairy business and rising baby food sales in Asia.

Danone’s goal for 2020 is to generate strong, profitable and sustainable growth, more specifically overall growth equal to or higher than 5%.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements