Danone has revealed that its like-for-like full-year net sales rose 2.5% to €24.7 billion following the strong performances of its specialised nutrition and water divisions.
Like-for-like full-year sales for the brand’s specialist nutrition arm rose 9.3% globally to €7.10 billion, with early life nutrition product sales growing 10%, while overall nutrition sales in China grew 30%.
Like-for-like water sales grew 4.7% to €4.61 billion, and the performance of Danone’s nutrition and water divisions offset weak growth in its international dairy operations.
Danone’s International dairy division, which includes Europe and Latin America, recorded a 1.3% fall in like-for-like sales to €8.42 billion, though the brand noted sales of Activia rose throughout the year in France, Spain and the UK.
The brand also posted strong operating income results, as its operating income figure rose 27.7% to €3.72 billion from the €2.92 billion figure recorded in 2016.
Emmanuel Faber Danone’s chairman and chief executive said: “In 2017, Danone once again demonstrated the strength of its portfolio, the resilience of its business model and its ability to execute.
“Despite volatile food and beverage markets and rising input costs, we delivered very strong full-year results, with double-digit recurring earnings per share growth in line with our latest guidance.
“We closed the year with an accelerated sales growth rate, outperforming the industry average, along with very strong margin improvement and free cash flow above €2 billion.
“In addition to strong results delivery, 2017 has been a year of preparation and continued transformation with the onboarding of WhiteWave, and the launch of our ambitious €1 billion ‘Protein’ savings program.
“In a trading environment that remains volatile and fragmented, we are starting 2018 with stronger foundations and I am confident that we are on track to accelerate towards our 2020 ambition, with another year of delivery against the commitment we made to our shareholders for consistent EPS growth.”
© FoodBev Media Ltd 2019