FRANCE: Danone Q1 volumes disappoint in dairy, infant nutrition
Upbeat Danone sees continued volume pressure
Danone has seen its share price dip this morning (16 April) after reporting first-quarter organic sales that narrowly missed consensus expectations.
The company revealed a 2.2% increase in organic sales in the first three months of the fiscal, climbing to EUR5.34bn (US$7.39bn). Consensus expectations had been for a 2.3% increase. The adverse impact of currency exchange meant reported sales fell 5.2%.
Danone said that the performance was "in line" with its "roadmap" and stressed that it has now "stabilised" its European business, which had suffered in fiscal 2013.
However, analysts pointed to volume declines in fresh dairy and early life nutrition, which resulted in lower volumes across Danone's regions, as cause for concern.
"Although the headline organic growth was broadly in-line with consensus expectations, volume performance was much more disappointing," Sanford C. Bernstein analyst Andrew Wood wrote in a note to investors.
"Negative volume growth in both fresh dairy and early life nutrition, as well as in every region, was a negative surprise. We had expected the weakest volume growth for over a decade...but this was much worse. Consequently, "in-line" results should disappoint."
Danone shares slid 1.35% to EUR52.55 at 11am in Paris this morning.
Click here to view the release issued by Danone today.
India is the world's largest raw milk producer and one of the biggest global markets for dairy products. While the participation of international dairies remains relatively low in the country, interes...
Danone SA - Strategy and SWOT Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings and ...
Project Synopsis: MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth act......
During 2013, Danone continued to see its sales shrink because of the economic recession and drop in disposable income among consumers....
The strategic direction of Danone continues to focus on two pillars: the first is to keep launching new products and new packaging and innovations in the Brazilian market. The second pillar is to deve...
- Interview part 1: BRF CFO Augusto Ribeiro
- Comment: Why Gardein is Pinnacle's ideal fodder
- BRICs: The thinking behind Mondelez's Vietnam deal
- JBS sees big opportunity from Primo Smallgoods
- Interview: How BRF plans growth in stagnant Europe
- Kellogg trumps Abraaj bid for Bisco Misr
- Danone, General Mills, Chobani "mislead parents"
- United Biscuits UK plant to start strike action
- Raisio buys UK, Ireland and Belgium Benecol ops
- Wrigley opposes Perfetti Van Melle "WTF" TM