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Danone’s board of directors has reviewed the company’s situation and prospects.

 

Danone confirmed its 2014 targets including organic growth of over 4.5% and trading operating margin down less than 20 basis points like-for-like. Free cash-flow will be between €1.3 and 1.4 billion.

 

“When I was appointed in October, I shared with our 100,000 employees that there was no greater inspiration than our mission: bringing health through food to as many people as possible,” said CEO Emmanuel Faber. “As 2014 draws to an end, I want to re-emphasize that message and reiterate that each of our core businesses—Fresh Dairy Products, Waters, Early Life Nutrition and Medical Nutrition—has a role to play in living up to our mission and achieving the profitable, sustainable growth that is an integral part of our strategy.”

 

Against this backdrop, Danone said that it will continue to expand capacity rapidly and build development platforms in fast-growing regions, particularly Asia and Africa. Investments made for this purpose over the past two years have resulted in a higher use of debt than in the past, the company said, at a level that could imply a credit rating one notch lower, noting that that is appropriate for this current period of development given the company’s sound cash-flow outlook and debt structure.