Profit tumbles for French food group

- Last updated on GMT

Related tags: Generally accepted accounting principles

French food group Danone reported a steeper than expected drop in
net profits on Monday, hit by charges for restructuring its
biscuit-making business and an early writedown of goodwill related
to its planned sell-off of Italian unit Galbani.

French food group Danone reported a steeper than expected drop in net profits on Monday, hit by charges for restructuring its biscuit-making business and an early writedown of goodwill related to its planned sell-off of Italian unit Galbani.

Net profit tumbled to €132 million in 2001 from €721 million a year earlier, on sales up 5.1 per cent at €14.47 billion. But operating profit rose four per cent to €1.609 billion from €1.550 billion previously.

Analysts polled by the JCF Group had banked on net profit down 17.3 per cent at €614.6 million, and operating profit up 3.8 per cent at 1.611 billion.

The company, known for its Evian mineral water, Danone yoghurts and LU brand biscuits, said it saw underlying sales growth of at least five per cent in 2002, with earnings per share rising 10 per cent.

Related topics: Market Trends

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