Danone to slash costs as sales growth slows

AFP, PARIS:  French dairy giant Danone unveiled a one-billion-euro ($1.1-billion) cost-cutting programme Wednesday as it said that sales growth slowed last year.
Danone said in a statement that although it turned in a “robust” performance last year, it needed to improve costs in order to face up to the current challenges.
“While we delivered a robust performance... the challenges we faced, including a slower turnaround of dairy in Europe and major market volatility, are a clear case to step up in our ability to seize consumer opportunities and improve our efficiency,” said chief executive Emmanuel Faber.
Danone said its net profit jumped by 34 per cent to 1.7 billion euros ($1.8 billion) in 2016, but sales declined by 2.1 per cent to 21.9 billion euros, largely due to exchange rate effects. On a like-for-like basis, sales grew by 2.9 percent, slower than the rate of 4.4 per cent recorded the previous year.

 

Danone to slash costs as sales growth slows

AFP, PARIS: French dairy giant Danone unveiled a one-billion-euro ($1.1-billion) cost-cutting programme Wednesday as it said that sales growth slowed last year. Danone said in a statement that although it turned in a robust performance last year, it needed to improve costs in order to face up to the current challenges. While we delivered a robust performance... the challenges we faced, including a slower turnaround of dairy in Europe and major market volatility, are a clear case to step up in our ability to seize consumer opportunities and improve our efficiency, said chief executive Emmanuel Faber. Danone said its net profit jumped by 34 per cent to 1.7 billion euros ($1.8 billion) in 2016, but sales declined by 2.1 per cent to 21.9 billion euros, largely due to exchange rate effects. On a like-for-like basis, sales grew by 2.9 percent, slower than the rate of 4.4 per cent recorded the previous year.