French food group Danone reaffirmed its outlook for 2005 after reporting a fractional rise in first-quarter sales today as emerging markets offset weakness in its European market.
"The first quarter of 2005 is in line with the expectations of the group and allows it to confirm its targets for the 2005 year," it said in a statement.
The maker of Danone yoghurts and Evian mineral water is aiming to increase underlying sales 5 per cent to 7 per cent this year and targets a 10 per cent rise in earnings per share.
It also seeks to raise its operating margin by 20 basis point to 40 basis point before exceptional items.
Danone shares opened higher, underpinned by the confirmation of targets and underlying sales growth.
That helped reassure investors who were unnerved by the hefty one-off charges in its water ventures which slashed earnings last year.
This morning the stock was up 1.1 per cent at €75.85, outshining the DJ Stoxx food and beverage index that was 0.2 per cent softer at the time.