Food giant Danone took advantage of the lower milk prices in 2015, with profit and turnover increases for the French owner of brands like Activia, Evian and Nutrilon. However, the growth was smaller than in the previous 6 years.
22.4 billion euro turnover
In 2015, Danone managed a 22.4 billion euro yearly turnover, up 4.4 % on a like-for-like basis. The French food group's adjusted operational profit grew nearly 9 % to 2.9 billion euro, resulting in a 1.3 billion euro net profit (up 15 % mainly thanks to cost-cutting measures.
Those are excellent numbers, even though its turnover growth was at its lowest point in 6 years. That slower turnover growth was also visible in its fourth quarter, when turnover only grew 2.2 % to 5.28 billion euro, when analysts had expected 5.31 billion euro.
“Despite a still volatile world in 2016, Danone will continue to invest in its brands and take further steps towards a balanced model, consisting of strong, profitable and sustainable growth", chairman of the board Emmanuel Faber (who took charge of Danone in October 2014) said.
The world's largest yoghurt manufacturer aims to get a 3 to 5 % like-for-like turnover increase this year, even though Danone expects worldwide milk prices to grow once more, especially outside of Europe and the United States.