Danone's souring Spanish sales point to wider malaise
Wednesday 20 June 2012
The French food giant Danone has warned that it is being hit by the financial crisis in Southern Europe, an admission that suggests rivals such as Unilever and Procter & Gamble must also be suffering.
The world's largest yoghurt maker, with brands including Actimel and Activia, said Spanish consumers in particular were cutting back, forcing it to issue what is in effect a profits warning.
Danone is also being buffetted by higher costs for raw materials such as milk and packaging.
It says profit margins will fall by 50 basis points in 2012. Danone had previously expected "stable" margins.
The chief financial officer, Pierre Andr Terisse, said Danone planned to respond to declining consumption in southern Europe with price cuts, but that it was too early to provide details. He said demand in Asia, the Americas, Russia and the Middle East remained robust.
Jon Cox, an analyst at Kepler Capital Markets in Zurich, told Bloomberg: "While I am not surprised about the
deterioration in southern Europe and assume Spain, Italy and Greece combined are around 10 per cent of its sales, I am surprised that it talks about higher commodity costs."
peopleContenders for Time magazine's Person of the Year are a mixture of the good, the bad and the holy
tvSteven Moffat reveals the actor was dying to take on the role of the Time Lord and says he is excited to see what he will do with the character
sportBayern Munich 2 Manchester City 3: City come from two down to beat reigning European Champions
newsAs the world remembers Mandela the hero, the prison where he spent 27 years seems all the more brutal
arts + ents... and a chance to paint Booker Prize winning author Hilary Mantel
danceUnder Tamara Rojo's inspired direction, it seems possible that it could challenge the dominance of the Royal Ballet. We meet some established names and rising stars
travelDiscover Uruguay's jet-set beach resort, an Atlantic enclave with plenty of art and culture to explore on the side
The ten coldest places on Earth
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Nelson Mandela memorial: Cheers, jeers and a masterclass from Barack Obama that stole the show
- 1 Mountain goats' miraculous escape from avalanche captured in dramatic video footage
- 2 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 3 Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
- 4 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 5 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- < Previous
- Next >
iJobs Money & Business
£45000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Technical Impl...
£65000 - £90000 per annum + Bonus + Benefits: Harrington Starr: Rogue Trading ...
£35000 - £45000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...
£40000 - £50000 per annum + benefits + bonus: Harrington Starr: Data Analyst -...