Milk powder problem
Recently, Danone had to remove milk powder in eight Asian countries, after
it had been revealed it might have
contaminated ingredients. Further analysis proved it was a false alarm, but
the damage had already been done. Danone is now looking to recuperate the
damages, at least 200 million euro, by tackling supplier Fonterra.
Recalling the powdered milk has caused Danone some “significant losses in
sales, earnings and cash-flow. Measures to repair the damages are starting to
pay off, but only very slowly.” The company had a third quarter turnover of 5.3 billion euro. Its full-year
prognosis has been scaled down at least 5 %, resulting in a possible turnover
growth of 4.5 to 5 %.
