French multinational food group, Danone are planning to cut costs over the next three years as sales in its EU dairy division are struggling to recover while also struggling to achieve targets in China.

Emmanuel Faber who became CEO in 2014 has vowed to return Danone to “strong profitable growth” by 2020 by concentrating on the US market, where the company purchased White Wave organic food group last year.

He is reviewing the business in China as well as overhauling the dairy division where he has already cut costs and launched new products.

The company is still completing the purchase of White wave Food Company for $10.4 billion (€9.81bn), which will double the size of its US business.

Danone, which manufacture Actavia yogurt, Evian water and Bledina baby food reported like-for-like sales increases of 2.9% to $21.94 billion (€20.18bn) in line with analysts’ expectations of for 2016.

This was down from 4.4% growth in 2015.

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Danone to cut €1bn in costs as EU dairy sales remain weak

The world’s largest yoghurt maker has decided to cut costs and reinvest in future growth as it remains cautious about 2017.