Food group Danone eyes further sales and profit growth for 2018

Yakult Honsha

16/02/2018 06:30

PARIS, Feb 16 (Reuters) - Food group Danone  DANO.PA  said 
on Friday it would focus on accelerating sales growth this year 
and deliver a further rise in profits, thanks to cost cuts and 
the benefits from its acquisition of U.S. organic food group 
WhiteWave. 
    Danone, the world's largest yoghurt maker, said it was 
targeting a double-digit rise in 2018 recurring earnings per 
share (EPS) at constant exchange rates, excluding the impact of 
the sale of a stake in Japan's Yakult announced this week. 
    Danone achieved 14.2 percent EPS growth in 2017, in line 
with its guidance. 
    "In 2018, the company will progress toward its 2020 ambition 
through further sales growth and an improved recurring operating 
margin," it said in a statement. 
    The company, alongside consumer goods peers such as Nestle 
 NESN.S  and Unilever  ULVR.L , is under investor pressure to 
improve results and it needs to deliver on 2020 profit margin 
and sales growth targets it set last year.  urn:newsml:reuters.com:*:nL8N1LN3KH 
    Like-for-like sales in 2017 rose 2.5 percent to 24.677 
billion euros ($30.95 billion), slightly above analysts' 
expectations of 2.4 percent growth. 
    The 2017 operating margin rose by 70 basis points to 14.36 
percent of sales, slightly above analysts' expectations of 14.26 
percent of sales. 
    ($1 = 0.7973 euros) 
 
 (Reporting by Dominique Vidalon 
Editing by Sudip Kar-Gupta) 
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters 
Messaging: dominique.vidalon.reuters.com@reuters.net)) 
 
Keywords: DANONE RESULTS/