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.
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 ...
MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organi...
Danone is the number two French dairy company and it owes its status to a portfolio of world known and strong brands, including Danone and Activia. Danone is very well positioned to take advantage of ...
Danone has confirmed the Greek yoghurts it has developed in tandem with Starbucks in the US will launch into the country's grocery retail channel next month....
Al Safi Danone aims to strengthen its position in dairy in Saudi Arabia and GCC countries through the provision of fresh products and heavy investment in product innovation and marketing....
- 10 Things to Learn - JBS's acquisition of Moy Park
- M&A Watch - ConAgra should divest Commercial Foods
- How the CGF plans to halve global food waste
- Focus: Battle against antimicrobial resistance
- Focus: Will synergies lift Ahold Delhaize in US?
- General Mills to axe 675-725 jobs
- CMA "accepts" Muller's revised Dairy Crest offer
- ConAgra confirms private-label exit
- Kellogg eyes trends with product launches
- 7-Eleven launches premium private label lines