News

FRANCE: Wahaha hits Danone HY results

Most popular

Should Pernod dump wine, bunk up with Brown-Forman

Why Brown-Forman will be one of spirits' winners

Retaliatory tariffs "wild card" for Brown-Forman

Diageo in North America - Focus

MORE

Danone has posted a slip in group net profit for the first six months of 2007.

The French food and drink company said yesterday (30 July) that net profit for the period was down by 7% to EUR656m (US$896m), while sales were up 9.2% to EUR6.5bn.

For the first half of this year, the company's beverages unit saw sales slow somewhat, primarily due to the ongoing dispute in China at Wahaha. Beverage sales for the six-month period were up by 4.7% to EUR2.14bn. Excluding the results of Wahaha, where sales dropped by 6% in H1, beverage activity grew by nearly 10%. Europe grew in mid single-digits, with balanced growth rates in most geographies. Latin America grew at over 20% supported by strong growth of flavored waters in Argentina.

In the results statement, Danone said it was continuing discussions with its partner in Wahaha, Hangzhou Wahaha. "Their outcome and their impact on the group's future financial statements cannot be precisely evaluated," the company noted. Danone has accused Wahaha of illegally selling products identical to those sold by the companies' joint ventures in China. Danone has filed a suit in Los Angeles seeking more than US$100m in compensation for the alleged illegal sales and has also filed for arbitration in Stockholm to help resolve the dispute. Hangzhou Wahaha, meanwhile, has countersued Danone, claiming the French company is complicit in also competing with the joint ventures.


Sectors: Soft drinks, Water

Companies: Wahaha, Groupe Danone

Related Content

Coca-Cola Amatil H1 2017 - results data

Coca-Cola Amatil H1 2017 - results data...

Danone to drop Evian's babies in the US for next 'Live Young' campaign

Danone to drop Evian's babies in the US for next 'Live Young' campaign...

How Danone has upped its health & wellness game - Research in Focus

How Danone has upped its health & wellness game - Research in Focus...

Distell fiscal-2017 by category and region - results data

Distell fiscal-2017 by category and region - results data...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?