FRANCE: Danone bounces back with Q3 growth | Progresiv
Danone has reported strong figures for its fiscal third quarter, helped by improvement in the key Europe market. The results marked a return to form for the group, which brought in Emmanuel Faber as its CEO a year ago after struggling with results. 
For the three months to end-September, overall sales were up 4.2% to 5.6 billion euros, and up 4.6% on a like-for-like basis. Sales were up 5.1% in Europe, 4.7% in the Asia-Pacific/ Latin America/ Middle East/ Africa region, and by 3.2% in CIS and North America.
The core Fresh Dairy unit saw sales edge up 0.3% LFL, but volumes were down 3%, an improvement on previous quarters. Sales at the Waters unit grew by 6.8% LFL, with a 5.7% increase in volume. The Medical Nutrition unit recorded a 6.9% rise in sales, with 5.8% volume growth. But the star performer was its baby food unit, with sales rising by 10.9% LFL, on a 3.7% rise in volumes.
Danone said besides the improvement in Europe, it was seeing maintaining growth in the key markets of Russia and China, although at a slower pace. The group said it expects conditions to remain difficult, and also forecast “marked but varied trends in the cost of major strategic raw materials”.
The group has forecast full-year sales growth of 4% to 5% on an organic basis, with a slight improvement in trading operating margin. (www.kamcity.com)
