Danone has raised its full-year growth forecast after the food group reported sequential improvement in sales volume and mix in the third quarter.
Comparably, sales will increase by between 6 and 7 percent in 2023 instead of the previously expected 4 to 6 percent. Danone also expects a moderate improvement in the ongoing operating margin.
In the third quarter, Danone had sales of 6.91 (previous year: 7.33) billion euros. The manufacturer of yoghurt, baby food and bottled water mainly felt the headwind from the currency side. In a comparable manner, sales grew by 6.2 percent, with the volume mix effect being minus 0.3 percent, after minus 2.3 percent in the second quarter. The volume mix effect is likely to be positive again in the fourth quarter.
According to a consensus compiled by the company, analysts had forecast sales of 6.90 billion euros and comparable growth of 4.7 percent. “This quarter is the seventh consecutive quarter in which we have met expectations,” said CEO Antoine de Saint-Affrique. “We continue to look to the future with confidence, despite a difficult environment.”
Danone shares temporarily rose by 1.35 percent to 55.49 euros in pre-market trading via Tradegate.
PARIS (Dow Jones)
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