2013 results
Sales[1] up +4.8%[2]
Trading operating margin[3] (-81 bps) and free cash-flow[3] (€1,549 million excluding exceptional items) in line with revised targets
2014 targets
Sales growth of between +4.5% and +5.5%[2]
Trading operating margin stable within a range of -20 bps and +20 bps[2]
Free cash-flow of around €1.5 billion excluding exceptional items[3]
[1]
[1] Net sales
[2] Like-for-like: see pages 11 to 13 for details on calculation of financial indicators not defined in IFRS
[3] See pages 11 to 13 for details on calculation of financial indicators not defined in IFRS
Chairman’s comments
“Despite strong headwinds that took a toll on our business, 2013 was a year of solid growth and decisive progress in building Danone’s future.
Several factors affected our results, particularly in the second half: currencies were volatile in emerging countries, milk prices rose steeply around the world, taxes went up sharply, and a false food-safety alert triggered by one of our suppliers had a marked impact on our Early Life Nutrition activities. Yet despite all that, we turned in a solid performance, with organic growth of nearly 5% driven by the success of many strategic projects. We consolidated our leadership in the US yogurt market, thanks to our Greek-style yogurt line. Our Russian platform—created by the successful merger of
Danone and Unimilk—experienced vibrant, profitable growth. And our Waters division reported strong, ongoing growth, thanks in particular to demand for aquadrinks.
We also achieved major progress on initiatives that will make our group stronger starting in 2014: in Europe, we renovated our product portfolio and undertook ambitious cost-reduction and streamlining to boost our competitive edge; in Africa, we integrated Morocco's Centrale Laitière and acquired an interest in Fan Milk, operating in Ghana and Nigeria. Together these moves will drive our future growth.
We are holding our course, focused on building a solid group and returning to sustainable, profitable growth in the course of 2014. This is the goal I have set our teams, and it is in this spirit that we are heading into the current year.”
For more information:
Corporate Communications: +33 1 44 35 20 75 / Investor Relations: +33 1 44 35 20 76
Danone: 17, boulevard Haussmann, 75009 Paris, France
1
Highlights
Full-year 2013 sales[1] of €21,298 million, up +4.8% like-for-like[2] from 2012, and up +2.1% as reported
Strong underlying trends across all businesses in 2013, with a gradual stabilization of business in Europe, and sales up +10%[2] in the CIS & North America[3] and ALMA[4] zones
Q4 performance nonetheless continued to reflect fall-out from the Fonterra affair and adverse exchange-rate effects, with sales up +2.9% like-for-like[2] and down -3.0% as reported
Full-year trading operating margin[5] stood at 13.19% in 2013, down -81 bps[2] from 2012 and in line with the revised target announced last October
Underlying fully diluted EPS[5] stood at €2.78, down -2.2% like-for-like[2]
Dividend unchanged from 2012 at €1.45, with the option of full payment in either cash or shares
Free cash-flow[5] for the year was €1,549 million excluding exceptional items[3], in line with the revised target announced last October
Key figures
2013
Change
20,869
21,298
+4.8%[2]
Free cash-flow excluding exceptional items[5]
2,088
1,549
-25.8%[6]
Trading operating income[5]
2,958
2,809
-1.1%[2]
Trading operating margin[5]
14.18%
13.19%
-81 bps[2]
1,818
1,636
-4.5%[2]
3.01
2.78
-2.2%[2]
€ million (unless stated otherwise)
Sales[1]
Underlying net income – Group share[5]
Underlying fully diluted EPS[5] (€)
2012
[1] Net sales
[2] Like-for-like: see pages 11 to 13 for details on calculation of financial indicators not defined in IFRS
[3] North America = United States and Canada
[4] ALMA = Asia-Pacific / Latin America / Middle-East /
