Market adjustments spur earnings growth for Groupe Danone
July 24, 2009
by FoodBusinessNews.net Staff
PARIS — Groupe Danone recorded net income of €722 million ($1,026 million), equal to €1.50 per diluted share, for the year’s first half. The results were up slightly when compared to the first half of 2008, when the company earned €701 million ($996 million), equal to €1.47.
Revenue for the first half of the year was €7,520 million.
"Our sales and results in the first half of 2009 clearly show that we are on the right track," said Franck Riboud, chairman and chief executive officer. "The numerous initiatives we have launched in various countries to quickly adapt our offer to consumer needs, particularly in dairy, have been seamlessly executed and have enabled a clear acceleration of our volumes."
During the second quarter of 2009, sales within the company’s Fresh Dairy division increased 0.7%, but the volume of product sold increased 2.7%. The company said the volume growth in the second quarter was a result of the company’s various marketing initiatives that the Dairy division began implementing at the end of 2008. The efforts centered on price reductions combined with targeted marketing programs and adjustments in pack sizes. The company plans to expand the efforts to additional markets in the second half of the year.
"We intend to accelerate our market expansion with a view to further strengthen our positions and seize new growth opportunities," said Mr. Riboud.