Danone raised its sales growth target for 2010 after the publication of its results for the first half Tuesday. The group recorded an increase in its turnover by 7% over the period (6.9% in the second quarter) to 8.364 billion euros. Danone now expects growth in sales of "at least 6%," cons "at least 5%" previously.
Current operating margin stood at 15.30% in the first half, against 16.03% over the same period in 2009. The band announced target for the whole year stable margins on a comparable basis compared to 2009. The operating profit amounted to 1.28 billion (against 1.2 in the first half of 2009).
The current net profit climbed 10.1% to 848 million euros.
Danone also aims to increase free cash flow from operations of at least 10% compared to 2009 historical data.
"A good start to the year"
Group CEO, Franck Riboud, speaking of a "good start to the year" and that Danone announces in particular will continue "to invest in developing countries, products and brands with strong potential: Child Nutrition in Asia, the Fresh Dairy division in United States, Brazil, Russia.
"At the same time, he adds, we are continuing our efforts to improve productivity, essential to cope with the volatility of our raw materials." Third key point, Franck Riboud said that "cash generation continues to grow strongly."