PARIS, July 26, 2001 (PRIMEZONE) -- Groupe DANONE (NYSE:DA)
Financial highlights for preliminary and unaudited half year results are established as follows:
(EUR millions) 2000 H1 % net sales 2001 H1 % net sales
2000 H1 2001 H1
SALES 7,254 100% 7,292 100%
Cost of goods sold -3,504 -48.3% -3,655 -50.1%
Selling expenses -2,297 -31.7% -2,225 -30.5%
Other -683 -9.4% -617 -8.5%
OPERATING RESULT 770 10.6% 795 10.9%
Non recurring items(1) -16 -0.2% -15 -0.2%
Financial cost -85 -1.2% -86 -1.2%
Taxes -266 -3.6% -256 -3.5%
INCOME OF FULLY
CONSOLIDATED COMPANIES 403 5.6% 438 6.0%
Minority interests -66 -0.9% -80 -1.1%
Net earnings of equity
method companies 15 0.2% 17 0.2%
Net income 352 4.9% 375 5.1%
(euros) Growth Growth
- Fully diluted earnings
per share 2.50 +17.9% 2.65 +6.0%
- Fully diluted earnings
per share before goodwill
amortisation 2.95 +19.3% 3.20 +8.5%
Cash flows from
operations 790 811
Capital expenditures -274 -298
Investments in
subsidiaries and
equity method companies -1,846 -796
Equity (incl. Minority
interests) 7,408 8,182
Net Financial Debt 4,562 4,685
Gearing ratio 62% 57%
(1) : Non recurring items do not include any capital gain & loss as of 6/30/2000 and as of 6/30/2001.
1/ SALES GROWTH (LIKE FOR LIKE) : +6.2 %
When restated for comparable structure and exchange rates, 1st-Half 2001 sales were up 6.2% compared to the same period of 2000. This 6.2% sales growth is derived for 4.3% from volume and 1.9% from value.
Changes in the scope of consolidation trimmed sales by 7.7%, mainly due to the disposal of the European brewing activities, while currency translation (primarily the US dollar and linked-currencies) led to a 2% rise.
For the 1st half, sales by business line and by geographical area are as follows:
BY BUSINESS LINE 2000 H1 2001 H1 Like for like
(EUR millions) Growth
Dairy products 3,223 3,477 +6.9%
Beverages 2,334 2,005 +9.2%
Biscuits 1,517 1,631 +1.8%
Other food businesses 187 188 +1.5%
Intercompany sales -7 -9 --
GROUP 7,254 7,292 +6.2%
BY GEOGRAPHICAL AREA 2000 H1 2001 H1 Like for like
(EUR millions) Growth
France 2,441 2,058 +3.4%
Rest of Western Europe 2,582 2,524 +6.3%
Rest of World 2,650 3,187 +7.5%
Inter-regional sales -419 -477 --
GROUP 7,254 7,292 +6.2%
Sales growth (like for like) by business line and by geographical area are established as follows:
BY BUSINESS LINE 1ST Q 2ND Q 1ST HALF Dairy products +7.0% +6.8% +6.9% Beverages +9.4% +8.9% +9.2% Biscuits +3.5% +0.3% +1.8% Other food businesses +2.4% +0.3% +1.5% GROUP +6.6% +5.7% +6.2% BY GEOGRAPHICAL AREA 1ST Q 2ND Q 1ST HALF France +6.3% +0.8% +3.4% Rest of Western Europe +6.6% +6.1% +6.3% Rest of World +6.8% +8.1% +7.5% GROUP +6.6% +5.7% +6.2%
2/ OPERATING MARGIN FROM 10.6 % TO 10.9 %
Operating margin showed a significant improvement, from 10.6% in the 1st half 2000 to 10.9% in the 1st half 2001.
Operating income and operating margin by business line and by geographical area are established as follows:
BY BUSINESS LINE Operating income Operating margin
(EUR millions) 2000 H1 2001 H1 2000 H1 2001 H1
Dairy products 351 385 10.9% 11.1%
Beverages (1) 296 242 12.7%(1) 12.1 %(1)
Biscuits 112 135 7.4% 8.3%
Other food businesses 21 28 11.2% 14.9%
Unallocated items -10 5 (2)
GROUP 770 795 10.6% 10.9%
(1) : Operating margin for Beverages included Beer activities during the first half 2000, Exc. Beer, operating margin for Beverages was 12.5% for 1st half 2000 and 12.3% for the 1st half 2001. (2) : Of which euros 25 million of brand royalties from Scottish & Newcastle Group.
BY GEOGRAPHICAL AREA Operating income Operating margin
(EUR millions) 2000 H1 2001 H1 2000 H1 2001 H1
France (1) 302 223 12.4%(1) 10.8 %(1)
Rest of Western Europe 252 263 9.8% 10.4%
Rest of World 226 304 8.5% 9.5%
Unallocated items -10 5 (2) - -
GROUP 770 795 10.6% 10.9%
(1) : Operating margin for France included Beer activities during the first half 2000, Exc. Beer, operating margin for France was 11.5% for 1st half 2000 and 10.8% for the 1st half 2001. (2) : Of which euros 25 million of brand royalties from Scottish & Newcastle Group.
3/ NET EARNINGS PER SHARE (FULLY DILUTED) ROSE +6% (+8.5% excl. goodwill)
Net income for the 1st half of the year stood at EUR 375 millions, up 6.5%.
Growth of net earnings per share (fully diluted) was 6.0%. Before goodwill amortisation, EPS growth reached 8.5%.
4/ FINANCING
Capital expenditures for the first half 2001 amounted to euros 298 million, which represents 4.1% of total net sales.
Investments in subsidiaries and equity method companies amounted to euros 796 million. This figure includes operations as Aqua in Indonesia, Galbani in Italy and Pureza Aga in Mexico.
The Group used its shares buyback authorization for euros 56 million.
Net financial debt reached euros 4,685 million at June 30th 2001, compared with euros 4,401 million at December 31st, 2000. The gearing ratio was 57% at the end of June 2001.
Final results for H1 2001 and 9 months sales will be released October, 10th