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Danone Forecasts Improved Profitability on Yogurt Recovery

  • Revenue to rise 3% to 5% with `solid' margin advancement
  • Shares rise as much as 4.3% after CEO says no need for big M&A
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Danone, the world’s biggest yogurt maker, forecast profitability to improve in 2016 as its fresh-dairy business recovers in Europe, sending the shares higher.

Trading operating margin should show a “solid” improvement in 2016, the Paris-based company said in a statement Tuesday. That’s a change from last year’s forecast of “slight” growth. The margin widened to 12.9 percent in 2015 from 12.6 percent in 2014, the first annual increase in four years. The shares rose as much as 4.3 percent.