FRANCE: Groupe Danone confident on 2009
Groupe Danone, the French dairy and water giant, has said that it expects to achieve above-market growth in all of its business sectors next year, despite worsening economic conditions.
Like-for-like sales growth in 2009 is likely to be a few points lower than this year's projected 8-10% increase, Danone said at an investor seminar in Paris, held yesterday and today (6 November).
Emmanuel Faber, co-chief operating officer, said volatile financial markets would impact performance at the firm, which owns Evian and Volvic water.
She said the group was confident that it could deliver growth above market averages in each of its categories, however.
Regarding 2008, she added: "Despite the current turmoil in world economies, we are fully confident to reach our 2008 full year targets."
The group expects like-for-like sales in the fourth quarter to rise by 5-6%, with earnings per share growth for the full-year at 15%.
Danone lifted bottled water revenue by 2% during the third quarter. But, the French firm said that it had suffered volume decline in Europe, with the UK, France and, to a lesser extent, Spain proving difficult markets.
Independent analyst James Amoroso told just-drinks that the French situation was "worrying" for Danone, with signs of a "creeping structural change" towards "commoditisation" on the domestic water market.
Danone's bottled water division emerged as the group's achilles heel in 2008, with some analysts suggesting the French giant would consider off-loading some of the business if it could....
Wahaha's chairman, Zong Qinghou, has emerged victorious from the Chinese company's latest battle with joint venture partner Danone in a China court....
French bottled water and dairy firm Danone has confirmed that it will pay a 2008 dividend of EUR1.20 per share....
The British Soft Drinks Association has attacked the Natural Hydration Council for its recently-announced advertising campaign, designed to promote bottled water in the UK....
A fall in sales of bottled water in the UK is down to consumers buying more "sugary drinks" rather than switching to tap water, according to a recent report....
Groupe Danone has reported a 1% sales rise for the first quarter of 2009, but a slide in bottled water sales has accelerated from the fourth quarter of last year....
Danone has said it intends to pursue growth in India independently, after announcing the end of its joint venture in the country with Wadia Group....
Bottled water sales in the UK will continue to fall in 2009, but the category is on-track to recover in 2010, according to a new report....
- Analysis - SABMiller to add bolt-ons in Africa?
- India: Everyone's Favourite Spirits Market
- A-B InBev's Move on Tennent's Super Makes Sense
- Brand Diversification Driving Craft Brewery Growth
- Comment - SABMiller and Diageo: A Tie-Up Too Far
- Diageo scraps Arthur's Day, but singer left sad
- SodaStream silent on John Lewis pullout in UK
- William Grant sinks GBP185,000 into "No" camp
- PepsiCo CEO sees "profound" change in US consumers
- SABMiller launches Grolsch in a jar - video