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DANONE
REGISTRATION DOCUMENT 2015
Danone's business highlights in 2015 and outlook for 2016
3.2 Consolidated net income review
56
Net financial income (expense)
Market risks exposure and management policy
See section 2.7
Risk factors
.
Net financial income (expense)
Year ended December 31
(in € millions)
2014
2015
Interest income on cash, cash equivalents
and short term investments
94
122
Interest expense on financial debt
(274)
(274)
Cost of net financial debt
(179)
(152)
Other financial income
5
1
Other financial expense
(137)
(134)
Other financial income or expense
(132)
(133)
Net financial income (expense)
(312)
(285)
Cost of net financial debt
In 2015, the cost of net financial debt was € (152) million (€ (179) mil-
lion in 2014).
The cost of net debt declined despite a rise in the amount of net
financial debt from 2014. This decline was linked in particular to
lower interest rates and the benefits of bond issuances that enabled
Danone to extend the average maturity of its debt at favorable
market conditions.
Other financial income (expense)
In 2015, Other financial income and expense was € (133) million,
stable compared with 2014 (€ (132) million in 2014).
Tax rate
The underlying tax rate for the full year was 31.3% in 2015, up
+0.8 point from 2014. This increase is due primarily to the depreci-
ation of deferred tax assets booked in the first half with respect to
losses carried forward by Dumex in China. This tax rate excludes
the non-current items and the tax income and expense pertaining
to these items (see table hereafter).
Moreover, when including the non-recurring items, Danone's effective
tax rate was 32.5% in 2015 (32.6% in 2014) and the differential with
the legal tax rate in France in 2015 and 2014 is provided in Note 8
of the Notes to the consolidated financial statements.
Recurring net income – Group share and recurring EPS
The net income amounted to €1,398 million in 2015 (€1,253 million in 2014). The net income – Group share amounted to €1,282 million
in 2015 (€1,119 million in 2014).
Share of profit of associates
The positive change in net income fromassociates reflects acquisitions
made in 2014 and 2015 and improvements in net income for some of
them. Moreover, the 2014 figure included non-recurring expenses
relating to the impairment of certain interests in associates, which
created a favorable basis for comparison.
Recurring net income – Group share
Recurring net income – Group Share stood at €1,791 million in 2015,
up +9.1% like-for-like, and up +14.7% as reported compared with
2014.Recurring EPS stood at €2.93, up +6.5% like-for-like and up
+12.0% as reported compared with 2014.