DANONE - Registration document 2015

54 / 364

DANONE REGISTRATION DOCUMENT 2015
Danone's business highlights in 2015 and outlook for 2016
3.2 Consolidated net income review
54
First quarter 2015 Second quarter 2015 Third quarter 2015 Fourth quarter 2015 Total 2015
(in percentage)
Reportedchange Like-for-likechange Reportedchange Like-for-likechange Reportedchange Like-for-likechange Reportedchange Like-for-likechange Reportedchange Like-for-likechange
By Division
Fresh Dairy Products -0.1% +0.2% +0.9% -1.1% -3.0% +0.6% -0.4% +2.6% -0.6% +0.6%
Waters +18.9% +8.6% +22.0% +10.2% +12.3% +6.8% +1.0% +1.9% +13.9% +7.1%
Early Life Nutrition +18.5% +11.6% +17.6% +11.1% +12.3% +10.9% +7.3% +6.0% +13.6% +9.8%
Medical Nutrition +15.8% +9.1% +13.3% +7.1% +9.1% +6.9% +7.6% +6.8% +11.3% +7.5%
By geographical area
Europe +5.0% +2.9% +3.7% +1.8% +6.1% +5.1% +3.0% +2.3% +4.4% +3.0%
CIS & North America (a) -4.0% +2.8% +1.8% +0.4% -4.4% +3.2% +2.1% +4.2% -1.2% +2.6%
ALMA (b) +19.0% +8.0% +20.4% +9.4% +6.9% +4.7% +1.6% +4.7% +11.7% +6.7%
Total +8.1% +4.8% +9.5% +4.5% +4.2% +4.6% +2.2% +3.6% +6.0% +4.4%
(a) North America = United States and Canada.
(b) ALMA = Asia-Pacific/Latin America/Middle-East/Africa.
Trading operating income and trading operating margin
Consolidated trading operating income and trading operating margin
Trading operating income totaled €2,892 million in 2015, compared
with €2,662 million in 2014.
Danone's trading operating margin stood at 12.91%, up +32 bps as
reported, reflecting a:
• +17 bps rise like-for-like;
• +6 bps rise due to changes in the scope of consolidation that
included deconsolidation of some Fresh Dairy Products opera-
tions in China and Indonesia;
• +9 bps rise due to trends in exchange rates.
2015 saw an increasingly volatile and complex environment in a num-
ber of geographical areas. In this context, Danone demonstrated its
capacity to adjust its profitable growthmodel in line with its roadmap
and 2020 ambition of strong, profitable and sustainable growth.
Cost of goods sold totaled €11,212 million in 2015 (€11,056 million in
2014), or 50.0% of consolidated sales (52.3% in 2014). This favorable
evolution reflects in particularly the deflationary trend of milk and
milk ingredients based prices as well as cost optimization of raw
materials.
As per 2015 roadmap, Danone has significantly stepped up its amounts
spent on marketing and sales compared with 2014, especially in the
Fresh Dairy Products Division and the Waters Division.
Selling expense was €5,677 million in 2015 (€5,209 million in 2014),
or 25.3% of consolidated sales (24.6% in 2014).
General and administrative expense was €1,944 million in 2015
(€1,743 million in 2014), or 8.7% of consolidated sales (8.2% in 2014).
Research and Development costs totaled €307 million in 2015
(€272 million in 2014), or 1.4% of consolidated sales (1.3% in 2014)
(see section 3.1 Business highlights in 2015).
Other operating income and expenses stood at € (682) million,
reflecting in particular an impairment loss for the Dumex brand
and for certain Dumex assets (€337 million), as well as expenses
related to Danone's cost reduction and organizational adaptation
plan in Europe.