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Danone sales rise, but fresh dairy volumes down

Danone has reported first quarter sales up 4.8%, which the company said is in line with its roadmap and enabling it to confirm its 2015 targets of organic growth in the 4-5% range with a slight growth in trading operating margin. “With a solid 4.8% organic growth, we are in line with our expectations for […]

Danone has reported first quarter sales up 4.8%, which the company said is in line with its roadmap and enabling it to confirm its 2015 targets of organic growth in the 4-5% range with a slight growth in trading operating margin.

“With a solid 4.8% organic growth, we are in line with our expectations for the quarter and with our roadmap, delivering further adaptation of our products and organization in Europe, confirming our leadership in North America and CIS and maintaining dynamic growth in emerging countries,” said CEO Emmanuel Faber. “In a continued difficult and unstable environment, Danone’s teams are focusing on our 3 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. This first set of results makes me strongly confident that, with the new Executive Committee and all teams, Danone is on the right track to reach a decisive milestone in 2015″.

The biggest like-for-like change was in early life nutrition, with growth of 11.6%. Medical nutrition grew 9.1%, and waters by 8.6%. Fresh dairy products – which comprised €2,809m of Danone’s total €5,471m sales – were flat with 0.2% growth. Volume was down nearly 5%.