February 24, 2014

Danone's 2013 profits down 15%

France's Danone's profits slumped 15% last year as markets in Europe weakened, and warned that a return to growth won't come before late in the year.

The company behind Danone yogurt and Evian bottled water says net profit fell to €1.42 billion (US$2 billion) in 2013, from €1.67 billion (US$2.3 billion) a year earlier.

Triggered by an infant formula recall due to a false contamination alert at dairy supplier Fonterra in August caused a €200-million (US$275 million) loss in sales in the fourth quarter.

This year demand in Europe will remain sluggish, according to Danone and said its underlying profitability, already down in 2013, could fall further in 2014. It says on-going restructuring will stabilise its performance in Europe by the end of 2014.