The Danone account continues stabilizing its margin after the problems in 2013 caused by the difficulties in China, the increase in milk prices, the tax burden and exchange rate effects.
The group will further reduce costs in Europe and reconfirm its position in infant nutrition in China, following last summer's infant formula call. The intention, the group said, is to return to having "strong, sustainable and profitable" growth from the second half of 2014, aiming to grow its sales between 4,5% and 5,5%, after the 4,8% reached last year at 21.298.000 euros.
The world leader in fresh dairy products also intends to establish its operating margin (plus or minus 20 basis points) after seeing it fall in 2013. The case, specified Danone, resulted in a loss of revenues in the 2013 financial year and of margin of 379 million and 306 million, respectively, and cost 26 basis points of operating margin.
In an attempt to reassure its prospects in China, the group said in an analyst conference that its share of China's infant nutrition market, following the false alarm, is now back at 14% from 12% in October.
Société générale analysts reduced their price target to 65-53 euros on Danone stock and in a note, underlined that activity in China is still 70% below its level in July 2013.
On the Stock Exchange, the Danone share is still up, with a gain of 2,98% to 51,90 euros at around 17pm.
