Food manufacturer Danone expects this year’s operational margin to be higher than previously anticipated. Danone’s revised turnover increase forecast is now 3 to 5 %.
Strong growth in emerging markets
Previously, Danone expected a “solid improvement” of its operational margin, but now it expects that to increase 50 to 60 points. The positive correction is thanks to Danone’s faster-than-expected growth in the emerging markets, particularly China. “We will continue to improve our business model’s strength by keeping our discipline when we invest and to save costs as well”, financial director Cécile Cabanis told Dutch newspaper FD.
The company’s forecast for 2020 is still within reach, as Danone predicts a “strong, profitable and sustainable growth” in the next few years.
