Danone sees growth slowing due to China and Morocco

Danone posted disappointing figures in the first quarter of 2019, as growth was lower than expected. Despite negative results in China and Morocco, the dairy company believes it will meet its financial targets for 2019 and 2020.

The turnover of Danone rose by about 0,8% to €6,14 billion in the first quarter of the year. The increase is somewhat disappointing for the dairy, given that turnover increased by 2018% in the last quarter of 2,4.

The decline in sales growth is mainly due to the fact that the Moroccan population uses Danone products boycot† The decrease is also due to the fact that the demand from China for baby milk powder is low. Due to the lower birth rate in the country, the sales of baby milk powder fell by 15%.

'Goal is attainable'
Danone aims for a turnover growth of 3%. The dairy processor is confident that this goal will be achieved. “Danone expects to end 2019 with strong growth, in line with our 2020 targets,” said Cecile Cabanis, Danone's chief financial officer, in a statement.

Tim Roetman

Tim Roetman has been working as a junior editor at livestock farming since November 2018 Boerenbusiness† He mainly writes about (price) developments in the pig and dairy market.

t.roetman@boerenbusiness. Nl

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