In 2013, Danone, the French food manufacturer, reported on losses for the first time in 10 years. The disappointing statistics made experts revise lower the 2014 estimates. The main reason for such a slump is the weak sales on the Asian market, which is among the world’s largest ones. The consumer demand decline is caused by a false contamination scandal that took place last year. The fact is that one of largest dairy suppliers Fonterra was accused of violating the food quality standards. This New Zealand’s exporter was under investigation as its production supposedly contained botulinum. The Danone board made up its mind to recall all the baby food consignment, which is delivered to the Asian region. Despite the fact that such a decision provoked great losses, the French food giant managed to preserve people’s confidence in the Paris-based company. So, in 2013, Danone’s net profit fell to €1.42 billion compared to €1.67 billion in 2012. The operating profit also slid. Even so, Danone shares are trading up at €52.08 apiece. Besides, the full-year sales ticked up a little to €21.3 billion in 2013.
