French dairy manufacturer Danone expects 2015 to have a lower turnover compared to 2014, when it still managed a turnover increase of 5 % despite a sizable profit drop.
Exchange rate fluctuations
Danone's 2014 turnover reached 21.1 billion euro, a 4.7 % increase compared to the year before. The profit dropped 20 % however, down to 1.1 billion euro, mainly because of negative exchange rate fluctuations and the fact that the European economy is still struggling.
These issues will still plague turnover and profits in 2015, according to Danone, and will result in lower numbers all around. Ignoring possible external agents, Danone forecasts a 4 - 5 % growth.
"Danone expects the economic situation will remain difficult and unstable in general. European consumer trends will prove fragile and maybe even deflationary, while emerging markets will be undermined by volatile exchange rates and difficulties normally found in larger markets", Belgian newspaper De Tijd quoted a press release.