Blog: Will Danone's Q1 herald good news for rest of European sector?
Dean Best | 14 April 2011
Shares in Danone rose today (14 April) after the French food giant's first-quarter sales beat analyst forecasts.
The Activia and Actimel maker recorded an 8.5% rise in sales on an organic basis for the first three months of 2011.
The result surprised analysts who noted that Danone's results lapped a first quarter of 2010 when sales rose a robust 7%.
By 16:25 CET, Danone's shares were up 1.9% to reach EUR47.73 and some in the analyst community believed the company's performance could improve the way the market perceives the fortunes of the rest of the major European listed food companies.
"Being the first company in European Food to report in the first quarter, we believed that Danone could have a positive impact on sector sentiment," Sanford Bernstein analyst Andrew Wood said. "We do expect that Danone’s stock will react positively on the back of upgrades to growth expectations for 2011, perhaps back into positive territory for YTD relative performance, and we expect a positive knock-on effect for its European Food peers too."
Danone completed its US$12.5bn acquisition of WhiteWave Foods this week. The move will roughly double Danone's presence in North America, where WhiteWave is a top four dairy player. ...
Premier Foods plc revealed today (28 March) it has secured a deal with its pension scheme trustees that will see the UK food maker reduce its pension burden....
Hain Celestial, under the scrutiny of the investment community in recent months and facing some challenges in its domestic market, has announced another shuffling of its management pack....
FrieslandCampina, which today served up higher profits but lower sales for 2016, is ready to offload the last non-dairy business owned by the Dutch cooperative giant....
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