FRANCE: Danone beats estimates with Q1 growth | Progresiv
Danone has reported better-than-expected first-quarter sales, helped by a rise in demand for baby food and bottled water products. For the period, sales grew by 8.1% to 5.5 billion euros, while underlying sales were up 4.8%, a slight improvement on the 4.7% rise recorded in the fourth quarter of last year. The group recorded growth across all its geographical regions, with sales in Europe up 2.9%, sales in North America & CIS up 2.8%, and sales in Africa, Latin America, and Asia up 8%. 
By unit, sales at its baby foods business were up 11.6%, with volumes up 4.4%, helped by strong demand in China. The Waters unit recorded an 8.6% increase (+6.6% volume), while the Medical Nutrition unit saw growth of 9.1% (+3.5% volume). The Dairy unit, however, continued to struggle, with sales edging up just 0.2% and volumes declining by 4.8%.
Danone said it expects conditions to remain difficult, but CEO Emmanuel Faber noted: “This first set of results makes me strongly confident that Danone is on the right track to reach a decisive milestone in 2015”.
The group reiterated its full-year target for LFL sales growth at 4%-5%, and operating margin to grow slightly. (www.kamcity.com)
