French food group Danone has reported a better-than-expected rise in quarterly revenue, boosted by strong yoghurt sales and an improved performance by its biscuit business.

Danone said first-quarter sales were €3.41bn (US$4.05bn), up 5.7% compared to €3.23bn in the year-ago period. After stripping out the impact of foreign currency exchange rates, acquisitions and divestments, sales rose 9.8%.

Danone said underlying sales at its fresh dairy product division rose 12.8%, while underlying sales at its biscuit business rose 3.1%.

The company confirmed its target of a 5-7% increase in underlying sales this year, reported Reuters.