© Thomas Haley/Danone
Danone has recorded “solid organic growth” in first quarter sales, with significant growth in the Paris-based food group’s waters division driving its overall performance.
The company’s as-reported sales increased by 8.1%, with like-for-like sales experiencing 4.8% growth. This was underlined by a reported change of 18.9% and like-for-like change of 8.6% within its waters division, which includes the Evian and Volvic brands.
Highlights of the rest of Danone’s first quarter performance include reported change of 18.5% in its early life nutrition line, and 19% growth in the Asia-Pacific, Latin America, Middle East and Africa (ALMA) region. Broad-based growth was driven by all regions, reflecting the solidity of Danone businesses across the board, it said.
It also revealed targets of between 4% and 5% organic growth in sales, and a slight growth in its trading operating margin, for 2015.
Danone CEO Emmanuel Faber said: “With a solid 4.8% organic growth, we are in line with our expectations for the quarter and with our roadmap, delivering further adaptation of our products and organisation in Europe, confirming our leadership in North America and CIS and maintaining dynamic growth in emerging countries. In a continued difficult and unstable environment, Danone’s teams are focusing on our three priorities: anchor our model of sustainable profitable growth, continue to make our brands and businesses more competitive to serve our consumers and shape the Danone 2020 agenda. This first set of results makes me strongly confident that, with the new executive committee and all teams, Danone is on the right track to reach a decisive milestone in 2015.”
Danone’s first quarter in full:
Reported change
Fresh dairy (-0.1%) Waters (+18.9%) Early life nutrition (+18.5%) Medical nutrition (15.8%)
Europe (+5%) CIS and North America (-4%) ALMA (+19%)
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