Danone ups margin target, tackles consumers

PARIS (Reuters) - Danone (DANO.PA) on Friday said it had begun to address consumer spending softness, allowing it to lift its 2008 operating margin target and it confirmed its full-year earnings and sales goals.

The French yoghurt maker and owner of Evian mineral water posted a first-half trading operating income of 1.177 billion euros ($1.84 billion), roughly in line with expectations of 1.175 billion euros in a Reuters poll of 10 analysts.

"In those markets where we have recently started to witness softness in consumer spending, our teams have already put all the necessary wheels in motion to be able to make the necessary adjustments," Danone said in a statement.

Danone, which acquired Dutch babyfood maker Numico last year, also said it would also accelerate innovations to strengthen its competitive advantage.

Sales in the six months to June 30 rose 9.6 percent at constant exchange rates and excluding disposals and acquisitions to 7.691 billion euros, slightly under the average forecast of 7.725 billion euros in a Reuters poll.

(Reporting by Astrid Wendlandt; Editing by Paul Bolding)