FRANCE: Groupe Danone waters stay strong on H1 Asia growth
Danone's water unit posted strong sales growth
Groupe Danone has reported a solid rise in H1 sales in its bottled water division, as “vigorous growth” in Asia boosted the unit's performance.
The French conglomerate, whose water brands include Volvic and Evian, said today (29 July) that its water unit's sales in the six months to the end of June were up by 9.6% to EUR1.99bn (US$2.64bn). Volumes in the unit also grew, by 5.9%.
Second-quarter sales grew by 10.5% with a 7.1% jump in volumes, eclipsing the first-quarter, when sales rose by 5.5%.
Europe, in contrast to Asia's emerging markets, saw sales continue to fall because of “adverse weather conditions”, Danone said.
Overall group sales grew 6% to EUR11.05bn in the first half, with Q2 sales up 6.5%, beating the consensus forecast among analysts of a rise of 5.7%.
In Europe, excluding the Commonwealth of Independent States (CIS), Danone said half-year group sales were down 4% year-on-year. However, its North American and CIS sales were up 9.3%, while the group's Asia-Pacific, Latin America, Middle East and Africa region saw sales increase 15.9%.
Danone reaffirmed its outlook for full-year sales growth of “at least” 5%. The company said it expected operating margins to fall by 30-50 basis points and that free cash-flow is expected to total around EUR2bn.
Shares in Danone were up 3.22% at EUR59.31 at 11:54 CET.
Danone chairman & CEO Franck Riboud said a restructuring plan in Europe that will cut around 900 jobs is “right on schedule, with the first benefits expected from the second semester onwards”.
To read the company's official statement, click here.
As we welcome in the New Year, we invite Euromonitor to cast its eye over what 2014 holds for the drinks industry. In the first part of this month's management briefing, the global market research and...
Danone Waters Deutschland GmbH is the second biggest player in bottled water in Germany. The company offers different brands within bottled water, including Volvic and Evian. Its main strategy is to f...
This month's management briefing takes a look at the last 12 months for the global drinks industry. In part one, Ben Cooper reviews the year in the bottled water category....
Danone France focused its efforts on its premium bottled water brands including Evian and Volvic. Bottled water is a challenging category in which to add value with considerable private label pressure...
Ahead of the Oscars, due to be handed out in just over a month's time, Richard Corbett has some gongs of his own to hand out. In recognition of the best new soft drinks products in 2013, who will win ...
Danone Waters (UK & Ireland) Ltd is focused on generating stronger business in the forecast period by tapping into the rising health consciousness of UK consumers and showcasing the benefits of simple...
The G8 Soft Drinks industry guide provides top-line qualitative and quantitative summary information including: market share, market size (value and volume 2008-12, and forecast to 2017). The guide al...
- Focus - Pernod's YTD Performance by Region
- Comment - Will We Understand the Language of Rum?
- just On Call - Pernod shifts Scotch focus in China
- Focus - Heineken's Q1 Performance by Region
- just The Preview - Pernod Ricard's Q3 & YTD
- CFO of Diageo's United Spirits stands down
- Pernod Ricard sees YTD recover as sales increase
- BrewDog launches GBP25m crowd-funding attempt
- Remy Cointreau US head to step down
- Africa "subdued" but Heineken sees Q1 rises
- Global Tequila insights - market forecasts, product innovation and consumer trends research
- Global rum insights - market forecasts, product innovation and consumer trends research
- Diageo plc (DGE) - Financial and Strategic SWOT Analysis Review
- Bacardi Limited - Strategy and SWOT Report
- ALDI 2015: Radically transforming Anglo Saxon grocery markets