News Half-year figures
Danone sells more dairy in corona time
The results of the French food group Danone have been slightly affected by the corona crisis. It can be concluded from the half-year figures that milk products are more eagerly in demand than water during this corona crisis.
Turnover fell in the first 6 months of this year by €500 million to €12,2 billion. Of this, €1,02 billion remained below the line, approximately €20 million less than in the same period last year. The lesser results had already been announced. At the end of February, France's second largest milk processor already issued a profit warning. This is as a result of the corona virus, which was already fully active in China at the time and then flared up in Europe with all its intensity.
Dairy sales are rising
If we zoom in on the figures, it appears that turnover in dairy products (including vegetable products) has increased by 3%. In addition, the margin of approximately 9% remained more or less intact. Dairy is by far the most important branch of the food group and accounts for about four-fifths of the turnover. Sales within Europe and the US continued to grow steadily, but sales in Africa declined due to the corona measures. Plant-based dairy is also doing well with double-digit growth.
The turnover of 'specialized nutrition' (including baby milk powder) was up 2,7%, the margin increased to a record 26,4%. This is due to an internal reorganization. In the second quarter, however, turnover fell, compared to last year. Sales to China remained stable, although less baby milk powder was sold there due to the closure of the border with Hong Kong. Something that has also affected FrieslandCampina in recent months.
Water sales plummet
While dairy sales held up well overall, almost 20% of water sales evaporated. The margin also fell, which cuts profits. The decreased thirst is due to the lockdowns in many countries. Danone water is mainly drunk outdoors. Due to the uncertain global economy and the volatile market movements, the French food group does not dare to forecast for the second half of 2020.
Wouter Job
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