Danone Q1 sales beat forecasts, strong infant formula performance in China
18 Apr 2018 --- French food giant Danone has exceeded market expectations in its first-quarter sales growth with a very solid performance in specialized nutrition driven by infant formula products sales in China. Danone report consolidated sales of €6 billion (US$7.5 billion) in the first-quarter, which is a 10.8 percent increase on a reported basis and up 4.9 percent like-for-like.
This was driven by a “very strong” performance of the company’s infant formula, which comes under the group’s specialized nutrition business in China.
Organic sales went up 4.9 percent year-on-year over the three month period and volume increased 1.1 percent and pricing/mixing increased 3.8 percent.
The world’s largest yogurt maker behind the brands Actimel and Activia said its dairy business is recovering, but sales remained slightly negative.
“I am very pleased with the strong results we have achieved in the first-quarter. With organic growth of almost 5 percent, this start to the year confirms the strength of our portfolio, reflects our relentless focus on execution and delivery, and our continued investment in brands and innovations,” said CEO and Chairman Emmanuel Faber.
“We have achieved further progress in developing a more sustainable platform of growth and in the premiumization of our offering in Early Life Nutrition in China, broad-based growth in Waters, and gradual improvement in our Essential Dairy and Plant-Based activities.”
Faber added how the outlook for 2018 looks positive, despite a “volatile environment.”
“With the issuance of the first social bond by a multinational company and the B Corp certification of its subsidiaries in North America, Danone has also reached in the first quarter important milestones in its ambition to lead the way in creating and sharing value for all.”
“We are reaffirming our confidence in the agility of our model to navigate a volatile environment to deliver our 2018 guidance and to accelerate towards our 2020 ambition.”
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