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News
Danone ups guidance
17 Jun 2016Danone has upgraded its guidance for trading operating margin for the year from “solid improvement” to a range of +50bps to +60bps, while confirming its sales growth guidance within a range of +3% to +5%.
As part of its transformation plan by 2020, Danone says it continues to strengthen its balanced growth model. To consolidate this model in a still volatile and complex environment and anchor profitable growth in a sustainable manner, the company says it relies more than ever on disciplined resource allocation, favouring solid execution of its growth plan.
“In 2016, we continue to implement our agenda to transform the company and increase the resilience of our business model through disciplined resources allocation, efficiencies and cost optimization,” said Cécile Cabanis, Danone Chief Financial Officer. “We leverage our ability to regularly review our investment plans to appropriately fund our short, mid and long-term initiatives and deliver profitable growth in a consistent manner. With fast evolving dynamics in some emerging markets and notably China, we are adjusting the pace of topline refueling for 2016 in these specific geographies. This leads us to upgrade for the year our guidance for trading operating margin from “solid improvement” to a range of +50bps to +60bps, while confirming our sales growth guidance within a range of +3% to +5%.”Danone says its 2020 targets remain unchanged: to generate a strong, profitable and sustainable growth.
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