The French company, known for Evian and its range of yogurt brands, said overall sales in the three months to March fell to €3.67bn from €3.76bn a year earlier.
CEO Franck Riboud said the results reflect “the impact of a deteriorating economic environment on consumption behaviour as well as a very high base of comparison in the first quarter of 2008”.
Excluding acquisitions and currency moves, like-for-like revenue rose 1% in the quarter, Danone said. Shares rose 0.5% to €37.31 in Paris morning trade. The dairy division, which accounts for more than half of Danone’s revenue, sales fell 2.7%. Revenue from the water unit fell sharply, by 11.7%.
The company repeated its sales and earnings guidance for the full year, saying it expects “no significant improvement or dramatic breakdown” in consumer behaviour, with sales growth driven by leading brands.
Danone said it expects growth in underlying earnings per share of 10% this year. Like-for-like sales this year are expected to grow “a few points below” Danone’s medium-term guidance of 8 to 10%, the company said. Its baby and medical nutrition units, formed after the company shed its cookie business and bought Dutch baby food maker Royal Numico NV, sales grew 5.9% and 6.7% respectively.
Sales in Europe, which accounts for 60% of revenue, fell 8.5%. Asian sales grew 5.7%, and the rest of the world reported 10% growth.
Source: Press Association
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