Danone sales growth rises more than 6%
February 15, 2006
by Jeff Gelski
PARIS — Groupe Danone reported net sales of €13,024 million ($15,532 million) for fiscal year 2005, a 6.1% increase from €12,273 million ($14,636 million) in 2004. On a like-for-like basis, it was a 6.7% increase. Net income attributable to the parent company was €1,464 million in 2005, which compared with €449 million in 2004.
"To deliver organic growth of 6.7%, while continuing to increase the operating margin of the group, despite the problems in our principal market and the increase in certain material costs, demonstrates the relevance of our chosen business strategies, which are: the reinforcement of our position in healthy eating, the development of new geographies, our intense effort in innovation, and the global deployment of our largest brands, which have a sales potential of €1 billion each," said Franck Riboud, chairman and chief executive officer.
Trading operating income rose in Fresh Dairy Products to €1,1019 million in 2005 from €917 million in 2004. Biscuits and Cereal Products increased to €343 million from €278 million. Beverages slipped to €474 million from €493 million.