Danone has reported its full year results for fiscal 2012, reporting growth although Europe remained challenging. The group clocked up sales of over €20.9 billion in fiscal 2012, up 5.4 per cent on a like-for-like basis. Net income was up 0.9 per cent, totalling €1.82 billion, while trading operating income rose by 1.8 per cent, to €2.96 billion.
However, Europe continued to be difficult with "a severe deterioration in overall consumer demand". Sales were down 3 per cent during the year, with a 2.2 per cent drop in volumes and a decline of over 10 per cent in operating income in the region.
The group's operations outside Europe now generate 60 per cent of revenues, with the emerging markets and North America combined displaying growth of over 10 per cent.
Like-for-like sales for the fourth quarter rose 4.9 per cent to €4.79 billion, although like-for-like sales in Europe dropped 0.9 per cent.
CEO Franck Riboud said 2013 will be a "solid year of transition on the way to profitable growth in 2014".
900 European Jobs Cut
The French food giant also announced on Tuesday (19 Feb) that it is to axe 900 jobs across 26 European countries as part of its €200 million cost-cutting plan. The move will see about 3.3 percent of the group's European workforce cut over two years.
In a statement, Danone said it will halve its management units, combining teams from several countries into multi-country units, as well as combining "several management functions" within its subsidiaries. (19 Feb)
© 2013 - ESM: European Supermarket Magazine by Sadhbh Connor
