For the Evian and Volvic bottler, water revenues climbed a record 23% on a comparable basis, driven by a +10.1% increase in sales volumes and a +13.2% increase in sales value.
The last quarter’s exceptional performance reflected a combination of factors benefiting every area of this business: mild weather and good growth for the waters category in west Europe; the year’s best performance in the top emerging countries – Indonesia, Mexico, China, and Argentina; and accelerated growth in the aquadrinks segment.
Strong growth in value resulted from a positive mix linked to aquadrinks and the effects of the price increases applied during the year, mainly in emerging countries.
Danone chairman and CEO Franck Riboud said: “2011 was both tough and positive.
“Tough because of the increasingly gloomy macro-economic environment in Europe, plus a steep rise in commodity prices that put pressure on our costs and entire organisation.
“But also positive because we came through successfully. First and foremost, our results made 2011 a successful year, as we once again met all our targets. Organic growth in sales stood at 7.8%, both full year and in the fourth quarter. We met our target for margin expansion. And our free cash flow continued to increase sharply, gaining over 9%. But above and beyond figures, we continued to build the future of our group.
“So we are moving into 2012 with confidence and energy, with our group both strong and actively engaged in building its business. Looking ahead, we anticipate no improvement in the economic environment or in consumer spending in 2012, and our priorities for the year remain the same: leveraging our growth drivers, investing in our categories and brands, and managing inflation and volatile costs while maintaining our competitive edge.”
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