Danone 3rd Quarter Sales up 4.1%

18/10/06 Groupe Danone has achieved +9.5% like-for-like sales growth in the third-quarter. This takes the like-for-like sales growth to +9.1% for the first 9 months of 2006.

Consolidated sales amounted to €10,772 million in the first 9 months of 2006, increasing by +9.3% on an historical basis. Changes in exchange rates had a positive impact of +0.8% while the scope of consolidation negatively impacted sales by -0.6%.

Like-for-like sales growth of +9.5% in the 3rd quarter derives from a +6.6% rise in volume and a +2.9% rise in value.

The acceleration of organic growth observed in the 3rd quarter is mainly due to the very good performance of the Beverages business in Asia. In Europe, the level of activity has been satisfactory. In the Rest of the World Group sales has continued to grow at a solid pace.

On a reported basis, 3rd-quarter sales increased +4.1%. Changes in exchange rates had a negative impact of -2.0% and changes in the scope of consolidation a negative impact of -3.4% (mainly arising from the non-inclusion of Britannia’s sales).

Based on the sales performance to date and the outlook for the 4th quarter Groupe DANONE now expects organic sales growth for the full year 2006 to be above +8%.

Trading operating margin progression should be within the [+20 bp to +40 bp] range of objectives, most probably in its lower part, as a result of the unfavourable geographical mix effect deriving from the very strong sales growth in the emerging markets.

The growth in underlying earnings per share from continuing activities should be above +15% for the full year 2006.