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Danone cautious on Europe
French food group Danone said yesterday that its operating margin would stay flat this year as the economic crisis continues to hurt consumer demand in Europe.
The world’s largest yoghurt maker also said the cost of milk would rise 10 per cent this year, more than the five to seven per cent it had previously expected, and that it was likely to continue to
raise prices in some markets. First-half operating profit rose two per cent to €1.28bn. First-half sales rose seven per cent on a like-for-like basis to
€8.36bn, with growth in Asia and the rest of the world outpacing 1.7 per cent growth in Europe. Danone raised its goal for 2010 like-for-like sales growth
to at least six per cent from an earlier target of at least five per cent.