Danone's dairy disappoints, water booms | RetailDetail

Danone's dairy disappoints, water booms

Higher prices for raw materials, especially milk and plastic, weighed heavily on Danone's result in the first semester of 2011. The world's biggest yoghurt producer had to fight a decrease in the dairy sales and had its net profits drop under analysts' expectations.

 

Danone is the first large food producer to announce its semi-annual results, but started the trend in a rather negative way. Net profits were with 861 million euro (still a small rise compared to last year) well below the expected 899.1 million. The total sold volume of Danone group dropped by 0.3% - especially in the dairy segment, which makes up 60% of Danone's turnover. Both the higher dairy prices (+5.7%) and the reorganisation at Danone's Russian daughter Unimilk led to the weaker results. 

 

One segment in which Danone did earn a very positive result is that of bottled water: Evian and Volvic grew 17% in this year's first semester, largely because of the very warm spring in Europe and the temporary unavailability of tap water in Japan after the earthquake.

 

For the whole of 2011, Danone aims for a turnover growth of 6 to 8%, expanding mostly in the US and newer markets as China, India, Indonesia and Mexico.

 

Higher prices for raw materials, especially milk and plastic, weighed heavily on Danone's result in the first semester of 2011. The world's biggest yoghurt producer had to fight a decrease in the dairy sales and had its net profits drop under analysts' expectations.

 

Danone is the first large food producer to announce its semi-annual results, but started the trend in a rather negative way. Net profits were with 861 million euro (still a small rise compared to last year) well below the expected 899.1 million. The total sold volume of Danone group dropped by 0.3% - especially in the dairy segment, which makes up 60% of Danone's turnover. Both the higher dairy prices (+5.7%) and the reorganisation at Danone's Russian daughter Unimilk led to the weaker results. 

 

One segment in which Danone did earn a very positive result is that of bottled water: Evian and Volvic grew 17% in this year's first semester, largely because of the very warm spring in Europe and the temporary unavailability of tap water in Japan after the earthquake.

 

For the whole of 2011, Danone aims for a turnover growth of 6 to 8%, expanding mostly in the US and newer markets as China, India, Indonesia and Mexico.

 

Questions or comments? Please feel free to contact the editors


Komono wants to reach 10 physical stores this year

17/05/2018

Belgian accessory label Komono wants to double its number of physical stores to ten this year. “The stores are important to tell our story”, Anton Janssens and Raf Maes told De Standaard.

Hema has to pay Levi's millions

17/05/2018

Store chain Hema needs to pay a 4.4 million euro fine to jeans brand Levi’s after the latter went to court because Hema applied its V-shaped stitching to its own collection.

Suitsupply suffers losses because of expansion

15/05/2018

Dutch Suitsupply has experienced a decent turnover growth last year, but its net result tumbled below zero because of its huge investments. Nevertheless, that is the only way forward according to its founder, whose focus is still fixed on the United States.

Starting this Friday, Belgium has its own national e-commerce event

15/05/2018

Move over, Black Friday! This week, Belgium launches its own national e-commerce event as Jack & Jones, Kiabi, La Redoute, Sarenza, Tape à l'Oeil and Veritas organise the first Belgian Friday.

H&M is turning to algorithms to boost sales again

14/05/2018

In an effort to reverse the decline in its worldwide sales, H&M is using technology that will help the world’s largest clothing brand stock its stores more efficiently, sell more effectively and adapt more quickly to current consumer trends.

Zalando's profit wiped away in first quarter

08/05/2018

German online retailer Zalando saw its first quarter profit completely wiped away: last year's 5.1 million euro net profit turned into a 15 million euro loss. Turnover grew 22 %, investments being the cause for both.