Danone reduces sales growth targets
Dairy group Danone has informed investors this week that they are very confident in the strength of their business model but have tempered expectations of high single-digit sales growth in the medium-term.
Emmanuel Faber, co-COO of Danone, reaffirmed that the French firm expected like-for-like sales growth of four per cent in the second half of 2009 but reduced medium-term expectations by cutting the sales growth target to ‘at least 5%’ from the previous 8-10% guidance.
“The world at large has gone, and is still going through, a profound transformational phase which will have a long-lasting impact on society and on consumer behaviour in specific,” Faber noted. “Our market share gains in 2009 are an evidence of the continued unparalleled ability of our brands to create value for our consumers, once adapted to the new macro-economic conditions. We are, more than ever, convinced of the relevance or our mission to “bring health through food to the largest number of people”.”
“We are also convinced that the strength and uniqueness of our business models and our leading market positions will enable us to succeed in this mission and to deliver a strong and sustainable long-term performance.”
The maker of Activia added that they were looking for growth to be largely stimulated by volume rather than price.