Danone, a France-based company producing fresh dairy products, baby nutrition products, bottled water and medical nutrition, has reported consolidated sales of EUR10,475m for the first half (H1) of 2012, a 7.7% increase, compared to the sales value reported during the same period the previous year.

Trading operating income was up 1.4% to €1,451m in the first half of 2012 against €1,407m for the same period the previous year.

Underlying net income increased 2.1% from €874m in the first half of 2011 to €911m in the first half of 2012.

Sales in the Fresh Dairy Products division increased 2.9% to €5,906m like-for-like in the first half of 2012 against €5,672m for the same period the previous year.

Sales in the Water division increased from €1,667m in first half of 2011 to €1,855m in 2012, an increase of 9.6%.

Danone chairman and CEO Franck Riboud said in the first half of 2012, the company experienced a tough period with consumer environment in Southern Europe.

"At Danone, we moved quickly to manage this new situation in line with our strategic priorities: strengthening our brands and pursuing sustainable, profitable growth," Riboud added.

"Our first-half organic growth in sales stands at nearly 6%, in line with our full-year objectives.

"In emerging markets, we are continuing to grow at a very brisk pace and are expanding our presence, as we did recently in Morocco and India.

"Finally, everywhere we operate we are innovating to offer consumers new experiences, adapted to their expectations; examples include Yolado in Spain and the renovation of Dumex in China."