In the Fresh Dairy division, the record growth of +12.2% came mainly from the strong contribution of the four blockbuster brands (Activia, Actimel, Taillefine/Vitalinéa and Petit Gervais/Danonino) which grew close to 20%.
Danone reported an excellent operational performance of the Group’s three business lines in 2007 with like-for-like sales up +7.2% and operating margin at 14%
On a reported basis, the net sales of the Group grew +5.9% and amounted to € 12, 776 mln. This includes two months of consolidated net sales of Numico for € 450 mln. Excluding Numico, Group sales grew +9.7% on a like-for-like basis. Changes in scope of consolidation and exchange rate had negative impacts of -4.6% and -2.9% respectively.
All major geographies contributed to the growth of the Group. Europe grew a strong +7.4%, Asia grew +4.7% while the Rest of the World grew +17.4%.
In the Fresh Dairy division, the record growth of +12.2% came mainly from the strong contribution of the four blockbuster brands (Activia, Actimel, Taillefine/Vitalinéa and Petit Gervais/Danonino) which grew close to 20%.
This growth was supported by an improved product mix and by price increases resulting from significant increases in milk costs. Growth in France was in the mid-single-digits, while the rest of Europe’s growth was in the teens. Eastern Europe, Latin America and North America also recorded strong growth.
The Water division growth of +4% is not fully representative of the performance of the underlying business. Indeed, Q3 was impacted by exceptionally poor weather in Western Europe, while the entire year’s performance was unfavorably impacted by the shareholder dispute at Wahaha. In the remaining geographies, sales of mineral and spring water continue to benefit from their positioning as natural and healthy products. In Latin America and Asia (excluding China), the performance was very strong. During the last two months of the year, the sales of Numico were impacted by the decision to align in-trade product stock-levels with Group practices. This decision has not affected the underlying growth trends of the business.
Franck Riboud, Chairman and CEO of Groupe DANONE, commented: “2007 was a historic year for Danone; a year of strategic decisions that reinforce our leadership position in healthy food. It was also a year of remarkable profitable growth. Despite strong headwinds, Danone had again reached its ambitious targets thanks to the highest ever growth rate in the Fresh Dairy Division and a very strong fourth quarter in the Water division. The underlying strength of the business, coupled with the smooth integration of our Numico business, gives me particular confidence in the Group's ability to accelerate its growth profile even further. As a consequence, we are increasing our growth targets for 2008 and beyond.”
Meanwhile Antoine Giscard d'Estaing, Executive Vice President for Finance, Strategy and Information Systems informed the Board of directors of his decision to leave Groupe DANONE to pursue other professional opportunities. Pierre-André Terisse, currently CFO of Altadis Group, will join Groupe DANONE effective March 1st, as Chief Finance Officer. Pierre-André Terisse, aged 41, is a French citizen, graduate of EM Lyon. He started his carreer at Groupe DANONE in 1992. Following several positions in financial departments in Belgium, Italy, Singapore and France, in 1999 he was appointed Corporate Finance Manager within the General Finance & Strategy direction of the Group in Paris. In 2003 he joined Altadis Group as Treasury Director. He was appointed CFO in 2006.
Source: Nutrition Horizon
