Danone complains of drop in southern Europe sales
PARIS - Agence France-Presse
Danone chairman Franck Riboud participates in a shareholders meeting. AFP photoFrench food industry group Danone said yesterday that the eurozone crisis had led to a drop in consumption in southern European countries and warned its operating margin would be squeezed.
The announcement sent shares in Danone, which also produces Evian water and Bebelac infant formula, plunging 6.05 percent to 48.71 euros in early trading while the market was up 0.41 percent overall.
“Since the end of the first quarter, the Group has faced a swift deterioration in consumption in Southern Europe that has proven steeper than anticipated, especially in Spain,” said Danone.
Prices for raw materials were also higher than initially expected.