Danone announced an increase in full-year profits. The company declared that  Danone sees 2010 financial and economic environment as  “challenging” .The announced net income reached EUR1.14bn (US$1.57bn), which corresponds to a 7.5% increase vs. 2008. But like many other companies in food industry, Danone also has  declared a sales decline of 1.6% down to EUR14.98bn. However when the impact of currency exchange excluded, total sales increased by 3.2% on a like-for-like basis. This was driven by a 5.2% rise in volume and a 2% decline in price/mix.In Asia sales were up 11%, in the rest of the world they were up 8% but in Europe, sales dropped 0.3%.

Danone said it will continue to face a challenging financial, economic and social environment in 2010, with continued difficult consumption trends in western economies, weak emerging currencies, and inflation of raw materials. They
will continue to focus on the development in their existing categories to strengthen their competitive positions and to develop further their brands.