51 / 364
DANONE
REGISTRATION DOCUMENT 2015
Danone's business highlights in 2015 and outlook for 2016
3.2 Consolidated net income review
51
Fresh Dairy Products
Sales
The Fresh Dairy Products Division recorded sales of €11,057 million
in 2015, up +0.6% on a like-for-like basis. This growth resulted from
the combined impacts of a -3.0% decline in volume and a +3.6%
increase in value. There was thus a gradual improvement despite
variations from one market to another.
Like-for-like
volume growth
Like-for-like
sales growth
2014
2015
6.6%
-3.0%
1.5%
0.6%
2014
2015
Main Markets
In Europe, the Division pursued a concerted effort to gradually steer
its business back to profitable structural growth. Sales trends have
confirmed a recovery in the second semester including, in particular,
a sequential improvement in volumes, supported by the favorable
basis of comparison signaling the end of PRGM (Profitable Revenue
Growth Management).
In the United States, Danone has been consolidating its leading po-
sition driven by portfolio development and by targeted investments
backing brands as well as continuing to leverage channel dynamics.
Recent new products,
Oikos Triple Zero
in the Greek yogurt segment,
Danimals Squeezable
pouch or
Light&Fit Shake
have substantially
contributed to this growth re-acceleration.
In the CIS, with consumer demand still sluggish, sales have resist-
ed. Danone has continued to enhance its portfolio through higher
prices and a positive mix effect, once again offsetting the significant
decline in volumes in low value-added segments.
Finally, the ALMA region reported a marked rise in sales reflecting
contrasting performances with positive results in Argentina, Mexico
and Japan, and a slowdown in Brazil in a very volatile economy.
Waters
Sales
The Waters Division recorded a strong performance in 2015, with
sales up +7.1% on a like-for-like basis to €4,768 million. This growth
reflected the combined impact of a +5.1% increase in volume and
+2.0% price mix effect.
Like-for-like
volume growth
Like-for-like
sales growth
2014
2015
7.5%
5.1%
11.6%
7.1%
2014
2015
Main markets
The Division's performance is contrasted with, first, strong growth
for the Division as a whole, excluding China, and second, Danone's
transitioning of the
Mizone
brand in China which started in the third
quarter of 2015.
In Europe, these positive results reflect strong performances for
both
evian
and
Volvic
brands that continue to benefit from the raft of
initiatives deployed to enhance their organization, portfolio structure,
distribution and innovation.
The ALMA region (excluding China) also turned in a robust per-
formance which was driven by
Aqua
in Indonesia and strong sales
growth in Latin America (including Argentina andMexico). Momentum
came from the fast-moving aquadrink segment and from continued
growth in plain waters.
In Chinese environment where the category consumption has
slowdown, Danone has continued since the third quarter of 2015 to
adjust inventories of
Mizone
to meet these shifting market trends
and to support
Mizone'
s medium and long-term growth potential.
A gradual return to a normalized growth pattern is expected in the
second half of 2016.