Food multinational Danone today reported a surge in first-half sales and raised its sales forecast, but net profit dropped 10% because of an exceptional boost to the baseline a year ago.
Danone said its net profit figure came to €838m. The equivalent figure last year had been inflated by capital gains from the sale of its subsidiary in Australia and New Zealand, Frucor, specialising in energy drinks.
Sales rose by 11%, or by 7% on a comparable basis, to €8.36 billion. Sales in Asia rose by 13.8%, in Europe by 1.7% and in the rest of the world by 16%.
In the second quarter, sales rose by 14% to €4.38 billion.
The French group, which makes yoghurt and produces Evian water and Bledina baby food, raised its forecast for growth of sales this year to a minimum of 6% on a comparable asset base, from 5% expected previously.
Finance director Pierre-Andre Terisse said the company's performance in the first half had been 'very firm', notably in the sectors of medical nutrition and food for babies. But most sales continued to be generated by fresh milk products.
Terisse said that Danone, having responded to the economic downturn by reducing prices, would move away from this strategy progressively.
