Danone reports strong organic growth in first half of 2016

Danone has announced its financial results for the first six months of 2016, during which it achieved a sales total of 11.05 billion euros (9.3 billion pounds).

This figure was down by three percent as reported, but represented an organic improvement of 3.8 percent on the first half of last year, with a strong improvement in recurring operating margin also recorded.

Its recurring earnings per share growth rate came to 13.5 percent for the half-year, with its dairy and early life nutrition businesses seeing particularly encouraging momentum during the most recent fiscal quarter.

The results have allowed Danone to confirm its full-year 2016 sales growth guidance within a range of three to five percent, while raising its recurring operating margin target. This is despite the fact that overall economic conditions are expected to remain volatile and uncertain for the rest of the year.

Emmanuel Faber, Danone's chief executive officer, said: "Danone demonstrated once again its capacity to successfully rebalance its growth model and transform its way of operating to deliver immediate key priorities, while ensuring progress on its journey towards strong, sustainable and profitable growth by 2020."