Danone returns to growth
Higher costs burden
French food company Danone SA (DANOY.PK) reported Thursday that its first-half net income - Group share increased 5.2 percent to 1.07 billion euros from prior year's 1.02 billion euros. Earnings per share were 1.63 euros, up 5.1 percent from 1.55 euros last year.
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Recurring net income - Group share was 1 billion euros or 1.53 euros per share, compared to 1.10 billion or 1.68 euros per share a year ago.
Sales declined 2.9 percent to 11.84 billion euros from last year's 12.19 billion euros. Sales grew 1.6 percent on a like-for-like basis.
In the second quarter, net sales of 6.17 billion euros grew 3.6 percent on a reported basis, and 6.6 percent on a like-for-like basis. Value was up 4.7 percent and volumes up 1.8 percent.
Further, Danone said it expects to buy back up to 800 million euros worth of shares, in one or more tranches, in the second half of 2021.
Looking ahead, Danone expects to return to profitable growth in H2.For fiscal 2021, the company continues to expect recurring operating margin to be broadly in line with 2020.
Regarding the macro-economic outlook, the company said, "Despite short-term uncertainties, a gradual reopening of economies is assumed to continue in H2 as vaccination programs are rolled out. Meanwhile, a broad-based acceleration of inflation in milk, ingredients, packaging and logistics is expected." (dpa)
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