Danone’s sales rise as dairy product demand revives
Company reported a 3.5 per cent rise in first-quarter like-for-like revenue
Emmanuel Faber, chief executive officer of Danone SA, speaks during an interview in Paris, on April 8th, 2016. Danone, the world’s biggest yogurt maker, forecast profitability to improve in 2016 as its fresh-dairy business recovers in Europe, sending the shares higher. Photograph: Marlene Awaad/Bloomberg
Danone on Tuesday reported stronger than expected first-quarter sales, and said it was on track to deliver higher sales and profits this year despite challenging conditions in Brazil and Russia.
The world’s largest yoghurt maker, whose brands include Actimel and Activia, reported a 3.5 per cent rise in first-quarter like-for-like revenue on the back of robust baby food sales in Asia, stronger dairy product demand in North America, and a better than expected performance at its water division. This beat a company-compiled average of analyst estimates of 3.2 per cent like-for-like growth in group sales. Danone’s shares rose nearly 4 per cent.
Emmanuel Faber, who took over as Danone’s chief executive in October 2014, is reviewing its business in China and overhauling its dairy division in Europe. – (Reuters)