Danone signals acceleration of sales in the second half

PARIS-the food group Danone expects sales growth to accelerate in the second half, after the challenging conditions in Europe and North America achieve their dairy business in the second quarter.
The world''s largest Yogurt Maker, whose brands include Actimel and Activia, reported on Thursday high greater than expected operating profit in the first half, helped by cost control and the first benefits of the acquisition of u.s. organic food producer WhiteWave.
"As expected, the slow start of the year is the result of specific challenges in emerging markets and challenges in Europe and North America," said the Chief Executive, Emmanuel Faber.
"The big improvement in margin and earnings per share growth this semester again are a good omen for our ability to achieve the goals for the year, with expected growth acceleration throughout the second half," he said.
Danone had slower growth than rivals such as Nestle and Unilever, largely due to weakness in its dairy business in Europe, where he had to face the slow consumption and competition of own brands.
The dairy business was hit by a relatively unsuccessful recovery of Activia in Europe, while in China the business of food for babies and water faced regulatory issues.
Danone reiterated its goal of double-digit growth of earnings per share at constant exchange rates to 2017, with a moderate sales growth, having reached an 11% growth of earnings per share in the first half.
The operating profit for the first half amounted to 1.72 billion euros (2 billion dollars), up 7,3% on a year earlier, above the median of Analyst estimates, of 1.646 billion euros.
In the second quarter, sales rose 0,2%-below the expectations of analysts, of 0,4%.