Fall in the sale of food for babies affects Danone recipe

Affected by regulatory changes in China have slowed down sales of food for babies, the French Danone reported a fall of 1.8% in the third quarter, to 5.54 billion euros, compared to the previous year. Constant currency revenue rose 2.1%, slightly below analysts '' expectations of an increase of 2.2%.
The company does not disclose profit numbers for the third quarter.
"We are focusing on strengthening our model and improve our margins, before we look at an acceleration of our growth," said the Chief Financial Officer of Danone, Cécile Cabanis.
By segment, sales of water were most affected, with a 5.7% decline in revenue, to 1.24 billion euros. The recipe with milk products fell 1.1 percent to 2.68 billion euros.
The company confirmed its financial targets for 2016, including the sales growth in constant currency from 3% to 5% and an expansion in its recurrent operating margin of 0.5 percentage points to 0.6 percentage point.