Danone 2006 operating profit rises

Danone reported a 10.1 per cent rise in operating profit for 2006 today amid demand for the health range of its dairy and beverage…

Danone reported a 10.1 per cent rise in operating profit for 2006 today amid demand for the health range of its dairy and beverage business.

The company said the year had ended "exceptionally strong" thanks to its beverages in China, where Danone has deals with bottled water maker Wahaha and Huiyuan Juice.

It forecast for this year like-for-like sales growth of 6 to 8 per cent, operating income growth of 7 to 10 per cent and earnings per share growth of more than 10 per cent.

Operating profit reached €1.914 billion in 2006, compared with a €1.918 billion average forecast.

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On an underlying basis - excluding the effects of currency swings, disposals and acquisitions - sales grew 9.7 per cent.

That compared with Danone's forecast that growth would exceed 8 per cent.