Groupe Danone has posted a strong set of first-half results on the back of growth from its dairy business and its soon-to-be-sold biscuits and cereal division.

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The French food giant recorded an 8.6% rise in operating profit to EUR1.1bn (US$1.5bn) and an identical rise in sales to EUR7.6bn during the first six months of the year.


Revenue from Danone’s dairy products jumped almost 12% to EUR4.4bn, while sales from its biscuits and cereal business – the bulk of which is set to be sold to Kraft Foods – rose over 5%.


Danone said its four “blockbuster” dairy brands saw sales leap 15% during the first half. Sales in France rose in the “mid-single digits” thanks to growing demand for Blédina, while sales across Europe rose 10%.


Danone saw its dairy sales in North America climb 10% thanks to the launch of Actimel and its increased focus on probiotics in the market. Growth in Argentina and Brazil, combined with share gains in Mexico, drove a 20% rise in Danone’s dairy sales in Latin America.

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The company’s biscuits business was buoyed by “double-digit” growth in Asia and rising sales in Spain. The latter offset slower growth in Eastern Europe.


Danone’s beverage business saw sales growth slow due to the company’s rumbling dispute with Chinese venture partner Wahaha. In all, Danone’s drinks sales rose 4.7%.


Danone chairman and CEO Franck Riboud said: “In the context of our recently announced strategic moves, this performance places us in a robust position as Danone enters the next exciting phase of development. A Danone which will be fully focused on health, totally international in character and which has an even stronger growth profile.”


In the context of our recently announced strategic moves, this performance places us in a robust position as Danone enters the next exciting phase of development. A Danone which will be fully focused on health, totally international in character and which has an even stronger growth profile.”