The board of directors of Groupe DANONE (NYSE: DA), meeting on September 13, 2000 under the presidency of Mr Franck Riboud, have examined the 2000 1st semester figures. These confirm provisional results announced on July 26th. These figures have been submitted to the control of the auditors. The Group's results for the first-half are as follows:

Key figures
(EUR millions)

1st-half

1999

1st-half

2000

 

Change

 

1st-half 2000
(FrF millions)

             

Sales

6,847

7,254

 

+5.9%

 

47,582

Operating income

698

770

 

+10.3%

 

5,049

Operating margin

10.2%

10.6%

 

+ 41 bp

 

10.6%

Net income (*)

341

352

 

+3.2%

 

2,311

             

Earnings per share (fully diluted) :

Excluding capital gains/losses

Eur 2.12

Eur 2.50

 

+17.8%

 

FrF 16.38

Excluding capital gains/losses and Depreciation of goodwill

Eur 2.48

Eur 2.95

 

+19.3%

 

FrF 19.38

(*) : Net income for the first-half of 1999 included a EUR 28 million capital gain on disposals; excluding this capital gain, net income rose 12.6% in the first-half of 2000

1/ Organic Growth Quickens: sales + 8.1% DANONE Group recorded vigorous organic growth once again, with first-half 2000 sales up 8.1% at constant structure and exchange rates. Historical data shows a rise of 5.9%, including an 8.1% like-for-like rise, a +3.7% for changes in exchange rates and a 5.9% decline reflecting disposals. Changes in structure consist primarily of the disposal of operations in containers and groceries in 1999, partially offset by the first-time consolidation of Villavicencio, McKesson, Robust and Aymore in the six months to June 30.

By business line

(EUR millions)

1st-half

1999

1st-half

2000

 

Change at constant structure and exchange rates

         

Fresh Dairy products

2,935

3,223

 

+7.6%

Beverages

1,829

2,334

 

+9.8%

Biscuits

1,327

1,517

 

+6.9%

 

 

 

 

 

Other food business

349

187

 

+5.5%

Containers

501

-

 

-

         

Intra-group sales

-94

-7

 

-

Group

----------

6,847

----------

7,254

 

----------

+8.1%


By geographical area
(EUR millions)

1st-half

1999

1st-half

2000

 

Change at constant structure and exchange rates

         

France

2,735

2,441

 

+5.7%

Rest of European Union

2,550

2,582

 

+6.6%

Rest of World

1,926

2,650

 

+11.7%

 

----------

----------

 

----------

Inter-regional sales

-364

----------

-419

----------

 

-

----------

Group

6,847

7,254

 

+ 8.1%


First-half growth by business and geographical area was as follows, on a comparable basis:

By business line

     
 

1st Q

2nd Q

1st-half

Fresh Dairy products.......................................

Beverages..........................................................

Biscuits..............................................................

Other food business.........................……….....

 

Group………......................................................

 

+ 6.9%

+10.7%

+7.7%

+5.4%

+8.1%

 

+8.3%

+9.3%

+6.1%

+5.6%

 

+8.2%

+7.6%

+9.8%

+6.9%

+5.5%

 

+8.1%

By geographical area

1st Q

2nd Q

1st-half

France...................................................................

Rest of European Union.................………...........

Rest of World......................................................

Group…………………….........................................

+6.6%

+5.8%

+11.8%

+8.1%

+4.6%

+7.6%

+11.7%

+8.2%

+5.7%

+6.6%

+11.7%

+8.1%

 


2/ CONSOLIDATE STATEMENTS OF INCOME

For S1 2000, the consolidated statement of income was established as follow :

 

1999 S1

2000 S1

Net Sales

6,847

7,254

Cost of good sold

(3,485)

(3,504)

Selling expenses

(2,024)

(2,297)

Other

(640)

(683)

Operating Result

698

770

Operating Margin

10,2%

10,6%

Non recurring items

21*

(16) *

Net interest expense

(79)

(85)

Tax

(252)

(266)

Minority interest

(56)

(66)

Equity in net earnings of affiliated CIEs

9

15

Net Income

341

352

* A disposal of 28 € million was included in the non recurring items for 1999 S; In 2000 S1 amount of disposal are null.

3/ A significant rise in operating margin: 10.2% to 10.6%

Operating margin rose from 10.2% in the first-half of 1999 to 10.6% for the same period of 2000.
Operating income breaks down as follows :

By business line

(EUR millions)

Operating income

 

Operating margin

 

1st-half

1999

1st-half

2000

 

1st-half

1999

1st-half

2000

           

Fresh Dairy products

310

351

 

10.6%

10.9%

Beverages

233

296

 

12.7%

12.7%

Biscuits

85

112

 

6.4%

7.3%

Other food business

Containers

19

51

21

0

 

5.4%

10.3%

11.3%

-

           

Unallocated items

0

----------

-10

---------

 

_

----------

_

----------

Group

698

770

 

10.2%

10.6%

 

By geographical area

(EUR millions)

Operating income

 

Operating margin

 

1st-half

1999

 

1st-half

2000

 

1st-half

1999

1st-half

2000

France

326

302

 

12.2%

12.4%

Rest of European Union

227

252

 

8.9%

9.7%

Rest of World

145

226

 

7.5%

8.5%

           

Unallocated Items

0

---------

-10

---------

 

_

----------

_

----------

Group

698

770

 

10.2%

10.6%

4/ Earnings per share up 17.8% (excluding capital gains on disposals)

Growth in net earnings combined with the impact of a major share buyback program launched by DANONE Group has led to :

. a 17.8% rise in earnings per share excluding capital gains on disposals

. a 19.3% rise in earnings per share excluding capital gains on disposals and depreciation of goodwill