Transformation Underway at Danone

 Breaking News
  • European Commission Clears Bayer’s Acquisition of Monsanto The European Commission has approved under the EU Merger Regulation the $62.5 billion acquisition of Monsanto by Bayer. The merger is conditional on the divestiture of an extensive remedy package, which addresses the parties’ overlaps in seeds, pesticides and digital agriculture. Commissioner Margrethe Vestager, in charge of competition policy, says: “We have approved Bayer’s plans to [...]...
  • Management Plan to Fortify Fishing Sector in Western Mediterranean Sea The European Commission has proposed a multi-annual plan for fish stocks in the western Mediterranean Sea. The proposal covers demersal fish stocks, ie fish that live and feed at the bottom of the seabed, and bring a significant income to the fisheries sector in the region. According to the latest data, it is estimated that in 2015, [...]...
  • Major International Summit in Belfast to Tackle Escalating Problem of Food Integrity Food-security experts from all over the world will converge on Belfast from 28-31 May 2018 for a major Summit on how to feed a growing global population – amid massive challenges such as climate change, Brexit, labyrinthine food-supply chains and food fraud on a global scale. The Belfast Summit on Global Food Integrity will be chaired by Professor Chris Elliott [...]...
  • Cargill’s Launches De-oiled Rapeseed Lecithin Products In response to growing consumer demand for label-friendly ingredients, Cargill is introducing a new range of de-oiled lecithin products to complete its portfolio of GMO and non-GMO lecithin products.  A first to market in Europe, Cargill’s de-oiled rapeseed lecithin products help bakery and snacks manufacturers deliver the recognizable ingredient label that consumers want, at an [...]...
  • Tetra Pak Scoops Top Award For Manufacturing Excellence Tetra Pak’s packaging material factory in Izmir, Turkey, has received the world’s top award for manufacturing excellence. In doing so, it becomes only the 22nd factory worldwide to win the prestigious award in more than 40 years. Appraised by the Japan Institute of Plant Maintenance​, the World Class Total Production Maintenance (TPM) Award is presented to facilities that [...]...

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



Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • March 28, 2018FOOD INDUSTRY
  • April 4, 2018The leading event for the snack and food-on-the-go market
  • April 5, 2018Slow food The forum for good taste
  • April 10, 2018EXPO XXI Warsaw International Expocentre
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here