French food and drink company Danone has reported a 1.0% slide in first-quarter revenue to €3.23bn (US$3.47bn), below the €3.27bn that analysts had predicted.

Danone said organic growth was 7.8% in the first quarter, enabling the company to confirm full-year 2003 targets of an organic revenue rise of between 5% and 7% and a rise in operating margin of between 11.9% and 12.1%. In 2002, the company’s operating margin was 11.7%, reported Dow Jones International News.

The company said the strength of the euro in the first quarter had knocked 9.1% off revenue compared with the same period a year earlier.

Danone also said the sale of the Italian Galbani cheese and processed meats unit in April last year had an 8.7% negative impact on revenue compared with the first quarter a year earlier.