In an unscheduled statement, Danone has raised its full-year target for profit margins, attributing it to improved cost controls.
The world’s largest yoghurt maker said it now expects trading operating margin to grow by 50bps-60bps for the year, compared to its previous forecast of ‘solid improvement’ on the 12.91% margin it recorded in 2015. The group also said it continues to expect like-for-like sales to grow by 3%-5%.
CFO Cecile Cabanis noted: “All the initiatives we’ve set and all the discipline on cost control we put in place are starting to pay off”. She added that the upgrade followed a quarterly management meeting in which Danone had evaluated its investments, cash, and cost savings.