Danone says sales growth to miss target on Spain, Activia

Danone SA, the world's biggest yogurt maker, said sales growth will be slightly below its target for 2016 as its fresh dairy business shrinks for a third year, hurt by weak demand in Spain and a slower-than-expected revamp of the Activia yogurt brand across Europe.

Revenue growth will miss the 3 percent to 5 percent goal, Danone said in a statement on Monday. Sales increased 3.2 percent on that basis in the first nine months. The stock fell as much as 3 percent in Paris.

Chief Executive Officer Emmanuel Faber is struggling to deliver on his pledge to halt a three-year drop in shipments of fresh-dairy products. To mitigate the sales slowdown, Faber has stepped up cost cuts and an efficiency drive.