FDBusiness.com

Transformation Underway at Danone

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

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 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements