Danone said it was confident about next year despite posting a drop in sales for the first nine months of the year today (23 October).
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On a reported basis, turnover fell by 2.1% to EUR11.3bn (US$16.9m) in the first nine months of 2009.
However, excluding currency fluctuation and the sale of juice business Frucor, sales rose 2.4% on a like-for-like basis.
The like-for-like growth was driven by a 3.9% rise in volume and came despite a 1.5% drop in value.
Franck Riboud, Danone chairman and CEO, said: “The operational adjustments we have been implementing since the start of the year are translating into an accelerated growth of our volumes and sales. We made the right decision and have been very efficient and fast in implementing it: we will have accomplished the repositioning of our products before year-end.”
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By GlobalDataSales in Danone’s fresh dairy division increased by 0.6% for the period to reach EUR6.4bn. Volume increased 2.9%
The company reiterated its 2009 targets and said it will continue to prepare 2010 with “confidence and determination”.
Based on Danone’s nine months performance, the company said it expects to deliver like-for-like sales growth close to 4% in the second half of 2009; a like-for-like improvement of the trading operating (EBIT) margin between 60 and 70 bps for the full year and a 10% growth of its underlying fully-diluted earnings per share.
Click here for the full results release and click here for Danone boss Franck Riboud’s thoughts on the company’s dairy division and EU regulations on health claims.
