French food and drink group, Danone recorded a 4.1% increase in consolidated sales during the first quarter on 2024.
In the first quarter, consolidated sales stood at €6.8 billion, led by an increase of 1.2% from volume or mix, and 2.9% from price.
On a reported basis, sales decreased by 2.5%, mainly penalised by the strong negative impact from scope (-5.0%) and the negative impact from forex, down 3.2%.
According to Danone, “hyperinflation” at 1.7% “contributed positively” to reported sales.
Regions
In the first quarter, European sales increased by 2.8% on a like-for-like basis, with volume or mix up 0.1% and price up 2.8%.
Essential dairy and plant-based (EDP) continued its turnaround, notably led by Actimel, Activia, YoPro and Alpro brands, despite temporary shipment disruptions.
In North America, sales increased by 2.5% on a like-for-like basis, led by an increase in volume or milk, which was up 1.5% and price up 1%.
China, North Asia and Oceania delivered an increase of 8.9% sales growth, led by volume or mix up 6.9% and price up 2%.
In Latin America, sales were up 4.1%, with price up 6.8% and volume or mix down 2.6%.
The performance was driven by strong growth in Waters, led by Bonafont.
EDP volume or mix was impacted by the licensing out of milk business in Brazil.
In the rest of the world, sales increased by 6% overall, with price up 4.9% and volume or mix up 1%, notably led by the resilient growth of Specialised Nutrition across Asia and the Middle-East, on a high base.
Danone
Danone CEO, Antoine de Saint-Affrique said that the company delivered a “good start” to the year.
“In what remains a challenging environment, we continued making good progress on our transformation agenda, strengthening our category fundamentals, intentionally driving our winning mixes and geographies,” he said.
In the first quarter of the year, Danone completed the sale of Michel & Augustin, and completed the sale of its milk and dairy activity Horizon Organic and Wallaby in the U.S. to Platinum Equity.
Danone also announced that the Russian regulatory approvals required for the disposal of its EDP business in Russia to Vamin R LLC have been obtained. The closing of this disposal is expected in the coming weeks.
“We are confident that 2024 will be another year where we deliver on our value creation model,” the CEO said.
“With that in mind, we look forward to talking more about the next chapter of Renew Danone at our Capital Market Event in Amsterdam in June,” he added.