Danone, the world’s biggest yogurt maker, set a lower sales forecast for 2015 than last year’s amid deflationary pressure in Europe and weakening currencies in emerging markets.
Sales will rise 4 per cent to 5 per cent on a like-for-like basis this year, the Paris-based company said today in an e- mailed statement. Last year’s goal was 4.5 per cent to 5.5 per cent. The company said it expects “slight growth” in the operating margin on the same basis, which adjusts for currency changes, divestments and acquisitions.
“Danone assumes that economic conditions will remain difficult and unstable overall, with fragile or even deflationary consumer trends in Europe, emerging markets undermined by volatile currencies, and difficulties specific to a few major markets,” particularly the former Soviet countries, the company said.
Trading operating income rose 3.7 per cent on a like-for- like basis to €2.66 billion ($3 billion) in 2014. That compares with the €2.69 billion median estimate compiled by Bloomberg. The company raised its dividend to €1.50 per share.
Bloomberg News, edited by ESM
