Danone drops 2012 targets due to lower demand

Demand for French dairy giant Danone’s products fell faster than expected in the second quarter of 2012, leading the firm to predict margins 50 basis points lower than originally anticipated. Operating margins were previously predicted to be stable for the year. That being said, Danone still plans on total revenue rising by 5-7% and its free cash flow to hit €2 billion. Danone blamed the increase in raw materials prices and a drop in consumption in southern Europe, which appeared to be particularly serious in Spain.

See our article in the July issue of Dairy Industries International on Danone’s new product, Yolado, which is now being launched on the Spanish market.