Summary Box: Rising costs hit Danone

AP News
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Posted: Feb 15, 2012 11:37 AM
Summary Box: Rising costs hit Danone

COST HIT: Buoyant sales in Asia helped French dairy giant Danone SA post strong revenue growth last year, but overall profits were pressured by high commodity costs.

PROFIT SQUEEZE: Net income fell 11 percent to euro1.67 billion. Chairman and CEO Franck Riboud blamed the high cost of raw materials. The company expects those costs to remain high in 2012 but said that it could at least partially offset them in its pricing policies.

EMERGING GROWTH: The company said 2011 marked the first time that emerging economies accounted for more than half of group sales.