Yogurt, coffee boost Danone in North America

Jeff Gelski

PARIS : Sales in Danone’s SA North American segment increased by 16% in the first quarter behind strong performances from Oikos and Activia in yogurt and International Delight and Stok in coffee.

“In both yogurt and coffee creations, we are seeing the benefits of the work done on portfolio architecture, which also allows for reinvestments that are more efficient, serving on a clear brand positioning,” said Antoine de Saint-Affrique, chief executive officer of Danone, in an April 26 earnings call. “In this first quarter (in North America), we also saw plant-based more moderately growing, recycling a high base of Q1 2022 while the Waters category was growing competitively at a very fast pace well into the double digits.”

A major competitor of Danone in the plant-based category had disruptions in the previous year’s first quarter, which benefited Danone, he said.

In North America sales in the quarter were €1.71 billion ($1.89 billion), up 16% from €1.48 billion. Like-for-like sales growth was 12%.

Companywide, Paris-based Danone had first-quarter net sales of €6.96 billion ($7.66 billion), up 12%. Like-for-like sales growth was 11% with pricing contributing over 10%. Sales grew in all geographic regions with Europe up 4.9%; China, North Asia and Oceania up 12%; Latin America up 15%; and rest of world up 16%.

Sales increased by 12% in all three of Danone’s business segments with Essential Dairy and Protein at €3.77 billion, Specialized Nutrition at €2.14 billion, and Waters at €1.05 billion.

Danone executives now expect fiscal-year like-for-like sales to increase between 4% and 6%, up from previous guidance between 3% and 5%.

Courtesy: foodbusinessnews