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Groupe Danone Reports 2006 first-half results

A very strong increase in like-for-like sales and underlying earnings per share
· Excellent like-for-like sales growth in 2nd-quarter 2006: +8.9%
· Best ever half for sales growth at +9%
· Trading operating margin increased +30 basis points on a like-for-like basis
· Very strong increase in underlying EPS: +25% (fully diluted from continuing activities)
· Like-for-like sales growth objective for 2006 raised: +7% to +8%
· Trading operating margin progression objective confirmed (+20 to +40 basis points on a like-for-like basis)

Commenting on the publication of the Group’s first-half results, Franck Riboud, Chairman and CEO of Groupe DANONE said:

“First half 2006 performance is the strongest ever in the Group's history in terms of like-for-like growth. Key to this success has been our geographic expansion and new frontiers approach, the fast roll out of our brands delivering health benefits and our constant commitment to innovate. After several years of strong growth, we are confident in the Group’s ability to continue to grow at a similar rate in 2006. The Group is in good shape to make further progress with clearly defined strategic and operational priorities supported by the energy and commitment of our staff worldwide.”

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