Danone has reported third-quarter net sales of €6.16 billion – up by 3.8% on a like-for-like (LFL) basis – amid “inflationary pressures”.
The owner of Evian and Volvic recorded sales of €1.11 billion for its Waters business and 4.6% LFL sales growth, with volumes increasing 2.4%.
Danone’s Essential Dairy and Plant-based business “continued its strong momentum” with sales growth of 4.1% in this quarter on a LFL basis.
The French group’s Specialized Nutrition business saw LFL sales growth of 2.9% but recorded a decrease of 5.3% in volume.
The firm’s Europe and North America sales were up 3.9% on a LFL basis, due to the recovery of its Waters business in Europe and the “sustained momentum in EDP”. Meanwhile, in the rest of the world Danone recorded sales of €2.66 billion, with 3.7% LFL sales growth, led by the performance of Specialized Nutrition in China.
Danone’s chief financial officer, Juergen Esser, said: “Today’s results further underscore our progress to profitable growth…Our Essential Dairy and Plant-based business continued its strong momentum, particularly in Europe and North America, with market share gains on key platforms. Our Waters business, led by a strong performance in Europe, benefited from the improved out of home mobility. And our Specialized Nutrition business also saw good dynamics driven by adult nutrition and the return to growth of infant milk formula in China.”
Esser continued: “Like just about everyone across the sector and beyond, we see inflationary pressures across the board. What started as increased inflation on material costs evolved into widespread constraints impacting our supply chain in many parts of the world. That said, we are putting even greater focus on productivity and pricing actions to mitigate the impact on our performance, thus re-iterating our FY 2021 guidance.”
© FoodBev Media Ltd 2022
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