Danone saw its full-year sales increase by 2.6% in 2019 to €25.29 billion, thanks in part to the performance of its specialised nutrition unit.
The division’s sales were boosted by an “exceptional” fourth quarter in China, as demand for baby formula brands such as Aptamil continued to grow.
However, the company said it expects the coronavirus crisis to cut €100 million off its first-quarter sales in China this year. It is now targeting like-for-like sales growth for 2020 of 2-4%.
Danone CEO Emmanuel Faber.
Within the essential dairy and plant-based unit, sales for the year were up 1.5% on a like-for-like basis. Plant-Based sales amounted to €1.9 billion, growing at a high-single-digit rate.
In recent months, the company has bolstered its plant-based portfolio with a range of new launches under brands such as Silk and So Delicious Dairy Free.
In the water division, which includes brands such as Volvic and Evian, full-year net sales were up 1.5%.
“2019 has been a year of strong progress for Danone both in terms of the delivery and the transformation of our company,” said Danone CEO, Emmanuel Faber.
“The sequential acceleration of our business quarter after quarter is evidence that we are in the right direction on sustainable profitable growth, while navigating multiple headwinds.”
In a move to put climate further at the core of its growth model, Danone has announced it will invest €2 billion over the next three years on sustainability projects.
The company will pursue its investments to innovate packaging alternative to plastics, such as glass, cans, and paper.
“We are convinced that there is an urgent and significant opportunity to put climate actions even more at the core of our business model, truly joining people’s fight for climate and nature with the power of our brands,” Faber said.
© FoodBev Media Ltd 2020
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