Paris — Danone is counting on baby food sales in China to help power annual earnings higher despite setbacks in Morocco and Brazil that slowed second quarter sales, the French food group said on Friday. "We are entering the second half with an operating model capable of offsetting these headwinds," CFO Cecile Cabanis said on Friday, referring to a boycott in Morocco and a trucking strike in Brazil. Danone "will progress towards its 2020 ambition through further sales growth and an improved recurring operating margin", the group said in a statement. Second-quarter like-for-like sales rose 3.3%, topping the 3.1% expected by analysts. This beat the 2.6% reported by rival Nestlé but marked a slowdown from 4.9% in the first quarter. Danone is targeting like-for-like sales growth of 4% to 5% by 2020 and an operating margin higher than 16%. It reported a margin of 14.27% for the first half. Shares in the world’s largest yoghurt maker were up 1.9% in early trading. Brokerage Liberum describ...
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