Research and Markets - Danone's Profitability Forecast Suggests Growing Dairy Product Markets

Feb 23, 2016, 11:07 ET from Research and Markets

DUBLIN, February 23, 2016 /PRNewswire/ --

The global yogurt drinks markets is expected to grow at a CAGR of 7.88% by 2020, according to a recent report available from Research and Markets. The report states that yogurt drinks are becoming popular among consumers looking for healthy snacks on-the-go, and this was backed up today by news of Danone's forecast of profitability for 2016. Danone, the world's biggest yogurt maker, predict sales to rise 3-5% with a solid trading operating margin for the coming year.

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Analysts estimated an adjusted operating profit of EUR 2.88 billion for 2015 with a fourth-quarter sales rise of 3.2%. Instead, Danone reported a EUR 2.89 billion profit and sales rise of 3.6%. Fresh-dairy sales rose 0.6%, and unit profitability widened from 9.3% to 10%. Danone makes more than half its sales from fresh-dairy products, and has been facing market challenges in the form of rising milk prices and a consumer slump in western Europe for a number of years.

Danone's profitability forecast suggests a changing attitude among consumers towards dairy products. The global organic dairy products markets is set to grow at a CAGR of 12% by 2019, as highlighted in a recent report. This growth offers Danone and other market participants the opportunity for increased sales.

A growth in the dairy market will have a positive effect on related markets, such as the packaging market. The global dairy packaging market is estimated to reach a value of USD 25.55 billion by 2020, up from USD 20.76 billion in 2014, as noted in an industry report.

For further information on this topic, and a full list of all related documentation, please visit the Dairy Products section at http://www.researchandmarkets.com/rm/MHNO.

Source: http://www.bloomberg.com/news/articles/2016-02-23/danone-full-year-earnings-rise-as-yogurt-profitability-improves

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