- First quarter reported sales up 8.1%, LFL sales up 4.8% YOY
- FY sales growth target of 4-5% confirmed
- Sales expansion across all operating regions
- Fresh dairy volumes continue to fall – down 4.8% in the period
Danone confirmed its full-year growth targets this morning (15 April) as it reported first-quarter top line expansion above market expectations.
The company said that sales rose 8.1% to EUR5bn (US$5.3bn) in the three months. On a like-for-like basis sales were up 4.8%. Consensus analyst expectations had predicted reported and organic growth of 7.1% and 4.6% respectively.
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Danone reported higher value sales across all its geographies, led by emerging markets. However, fresh dairy volumes continued to slide, reflecting portfolio rationalisation in Europe that aims to improve trading margins.
The French dairy-to-infant nutrition group reiterated that it expects full-year sales growth of 4-5% and a slight increase in operating margin.
CEO Emmanuel Faber commented: "Danone’s teams are focusing on our three priorities: anchor our model of sustainable profitable growth, continue to make our brands and businesses more competitive to serve our consumers and shape the Danone 2020 agenda… Danone is on the right track to reach a decisive milestone in 2015".
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