Danone share in the plus: Danone increases revenue sharply – sales outlook increased

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In the first three months, sales rose more than experts had expected. Danone boss Antoine de Saint-Affrique took the results published on Wednesday as an opportunity to raise the growth forecast for the full year. However, the environment in Europe remained characterized by a decline in sales due to high inflation. The strongest growth driver was business in China thanks to successes with baby food.

The stock rose by one percent to EUR 61.01 in the top group of the euro zone’s leading index EURO STOXX 50. In the past few months, the price had already recovered noticeably from its lows in autumn at times well below 50 euros. JPMorgan analyst Celine Pannuti now expects rising market estimates for the French. The group performed better than expected in all regions and divisions.

Overall, revenue in the first quarter rose 11.6 percent year-on-year to EUR 6.96 billion, as Danone announced in Paris. On a comparable basis, this was an increase of 10.5 percent. Analysts had only expected an increase of just under 7 percent here. “While this is encouraging progress, there is still work to be done,” de Saint-Affrique said of the results.

The growth came almost exclusively from higher selling prices. Management raised the guidance range for expected comparable sales growth for the full year to 4 to 6 percent. Previously, it had calculated a 3 to 5 percent increase. The adjusted operating margin is still expected to recover slightly.

In Europe, volumes sold continued to decline, albeit less sharply than in the previous quarter. There was noticeable growth in sales only in the region of China, North Asia and Oceania – although the price increases were the lowest there. Overall, sales in the group as a whole grew by 0.2 percent. Analysts, on the other hand, had expected a damper in volumes.

As is usual in France, Danone did not give any earnings figures for the first quarter.

Danone shares temporarily rose by 0.58 percent to EUR 60.79 on the EURONEXT Paris.

PARIS (dpa-AFX)

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