Milling & Baking News Corporate Profiles - October 2011 - (Page 80)

Company Overview Groupe Danone S.A. Strong results come amid difficult market conditions G roupe Danone S.A. continued to show strong financial results despite challenging market conditions for some dairy products and continued weakness in the global economy. The Paris-based company saw 2010 sales increase 7% from 2009, volume grow 8%, net income gain 14% and fully-diluted earnings per share rise 9%. “Continued high operating margin and a 20% rise in free cash flow are remarkable achievements in a year that saw a steep rise in raw material prices and the end of adjustments to sales prices under our Reset Program, which improved our competitive edge,” Franck Riboud, Groupe Danone chairman and chief executive officer, said in his annual letter to shareholders. That strong performance continued in the first half of 2011 with six-month net sales up 16.3% from the same period a year earlier, and like-for-like sales up 8.7%. Fully diluted earnings per share were up 4% and up 5% on a like-for-like basis. The gains occurred across all regions and all divisions, with the Waters division posting a record 19% like-for-like increase in sales for the second quarter, the company said. Fresh Dairy division sales rose 6% on a like-for-like basis in the second quarter of 2011, reflecting a volume decline of 0.2% and a value increase of 6%, the company said. “Danone has once again met its targets in a persistently difficult environment shaped by trends in consumption and rising raw materials prices,” the company said concerning first-half results. Groupe Danone’s U.S. segment, The Dannon Company, Inc., based in White Plains, N.Y., is one of the top two yogurt producers in the United States. With yogurt consumption in the United States significantly lower than in Europe, Dannon hopes to double yogurt consumption in the United States with three key priorities: make yogurt a habit among consumers, re-invent the shopper experience and have the right operational model. Dannon’s share of the total U.S. market increased slightly to 35.8% in 2010 from 35.7% in 2009, but its share of the Greek yogurt market was up sharply in the first quarter of 2011 at 19% from only 9% a year earlier. Late last year Dannon said it had settled outstanding inquiries from federal and state regulators that were investigating claims about the health benefits of its Activia and DanActive products. The company agreed to a $21 million settlement while not admitting any wrongdoing. Although Danone’s global merger activity slowed in 2010 and so far in 2011 compared with 2009, in August the company signed an agreement to acquire the nutrition business, brands and related industrial operations of the Wockhardt Group for about Franck Riboud €250 million, thus entering the baby nutrition market in India, the world’s fastestgrowing infant nutrition market. In December of 2010 a joint venture with Unimilk made Russia the company’s largest national market other than France. “Reflecting the growth strategy Danone has pursued for many years, our structure is changing rapidly and emerging economies now represent half of our business,” Mr. Riboud said earlier in 2011. After second-quarter results, Groupe Danone reiterated its 2011 targets of 6% to 8% growth in like-for-like sales despite a 6% to 9% average increase in raw material and packaging costs, and flat consumer spending. The company said it would continue to use pricing to maintain its competitive edge. CP F ast acts Dannon’s share of the U.S. Greek yogurt market climbed to 19% from 9%. Dannon Co. settled federal and state investigations about Activia and DanActive claims for $21 million. Groupe Danone reiterated its target for 6% to 8% sales growth on a like-for-like basis in 2011. 80 \ October 2011 Milling & Baking News • Food Business News • Baking & Snack • Meat & Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - October 2011

Milling & Baking News Corporate Profiles - October 2011
Contents
Editorial - Headwinds yes, but improvement looms
Grain-based foods
Frozen meals
Soup
Beverages
Beef, chicken and pork
Dairy
Confectionery
Food service
Company Overview - Grupo Bimbo S.A.B. de C.V.
Company Overview - Campbell Soup Co.
Company Overview - The Coca-Cola Co.
Company Overview - ConAgra Foods, Inc.
Company Overview - Groupe Danone S.A.
Company Overview - Dean Foods Co.
Company Overview - Diamond Foods, Inc.
Company Overview - Dunkin’ Brands Group Inc.
Company Overview - Flowers Foods, Inc.
Company Overview - General Mills, Inc.
Company Overview - Hain Celestial Group Inc.
Company Overview - The H.J. Heinz Co.
Company Overview - The Hershey Co.
Company Overview - The Kellogg Co.
Company Overview - Kraft Foods Inc.
Company Overview - Krispy Kreme Doughnuts Inc.
Company Overview - Mars, Inc.
Company Overview - Nestle S.A.
Company Overview - Panera Bread Co.
Company Overview - PepsiCo, Inc.
Company Overview - Ralcorp Holdings, Inc.
Company Overview - Sara Lee Corp.
Company Overview - Smithfield Foods, Inc.
Company Overview - J.M. Smucker Co.
Company Overview - Snyder’s-Lance, Inc.
Company Overview - Tyson Foods, Inc.
Company Overview - Unilever P.L.C.
Ad Index

Milling & Baking News Corporate Profiles - October 2011

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