Danone 1st Half Net Profit, Revenue Fell on Coronavirus Hit -- Update
July 30 2020 - 2:33AM
Dow Jones News
--Danone first-half net profit and revenue fell
--Company said second quarter was most challenging of year
--Sees continued uncertainty in the second half
By Matteo Castia
Danone SA reported on Thursday a slight fall in first-half net
profit as the coronavirus hurt revenue and said it expects results
to improve although uncertainty persists for the second half.
The French food company made a net profit of 1.02 billion euros
($1.20 billion) for the six months compared with EUR1.04 billion
for the year-earlier period.
Revenue fell to EUR12.19 billion from EUR12.65 billion the
previous year. In the second quarter, revenue decreased 8.3% to
EUR5.95 billion.
"After a strong momentum in the first quarter with sales up
3.7%, sales decreased by 5.7% in the second quarter on a
like-for-like basis, hit by the expansion of the Covid-19 pandemic
into new regions, most notably Latin America," Danone said.
First-half recurring operating income came in at EUR1.70
billion, down from EUR1.86 billion the prior year.
The company defines recurring operating income as operating
income excluding other operating income and expenses. Other
operating income and expenses comprise items that, because of their
exceptional nature, cannot be viewed as inherent to recurring
activity.
"The second quarter was the most challenging quarter of the year
and the back half of the year will show a sequential improvement in
growth," Chief Executive Emmanuel Faber said.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
July 30, 2020 02:18 ET (06:18 GMT)
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