date:Jun 22, 2012
Since the end of the Q1 2012 (January to March), consumption of Danone products in Southern Europe has deteriorated at a steeper rate than anticipated, particularly in Spain. Danone has attributed this to the growing rate of unemployment in the region.
Inflation of raw material prices, which was also stronger than anticipated, also contributed to the firms decision.
As a result, Danone reduced its profits forecast for 2012 - announcing that its operating margin was likely to decline by50 bas