Danone eyes growth in volatile emerging markets

Cost cuts, rising baby food sales in Asia, and an improvement at its dairy business in Europe will all help Danone deliver higher sales and profits this year despite volatile emerging markets, the French food group said yesterday.

Shares in the maker of Activia and Actimel yoghurt rose more than 3.5% as analysts expressed relief after recent downbeat comments from rivals such as Unilever and Nestle.

“The guidance looks prudent and achievable, enabling Danone to generate sustainable profitable growth in 2016 and beyond,” Liberum analysts said.