Infant formula sales boost Danone’s results as it predicts milk prices to rebound
An increase of 11.6% in infant formula sales have boosted Danone’s first quarter sales for 2015, the company has announced.
Infant nutrition sales were in line with the company’s projected expectations of 12%. In Europe sales in the first quarter showed double-digit growth, which was driven by brands such as Aptamil and Nutrilon, it says.
The company said that there was a decrease of 4.8% in sales volume of fresh dairy products and in Europe sales of fresh dairy products were down by 4%.
For 2015 Danone expects marked but varied trends in the cost of major strategic raw materials, particularly milk.
Recently the company announced that there will be lower prices in Europe and the US for the first half of 2015 however, a rebound is likely in the second half of the year.
It also says that it anticipates gradual prices increasing in emerging countries all year long. Altogether the company expects a moderate rise in the cost of main raw materials and packaging 2015.
Danone’s first quarter sales for 2015 are up by 4.8% from the same time last year, the company has announced.
Danone has also reported consolidated sales growth of 8.1%, totalling €5.4m and the company’s 2015 targets include organic growth in sales of between 4% and 5%.
“With a solid 4.8% organic growth, we are in line with our expectations for the quarter,” Danone’s CEO Emmanuel Faber said.