Danone, the French producer of yoghurts, bottled water, and infant-nutrition products, has raised its full-year sales growth guidance following a sequential improvement in volume/mix sales in the third quarter. The company now expects like-for-like sales growth between 6% and 7% in 2023, up from previous expectations of between 4% and 6%.
Positive Outlook for Danone
Danone also anticipates returning to positive volume/mix territory before the end of the year and confirms a moderate improvement in the recurring operating margin. This positive outlook comes despite lower third-quarter sales of €6.91 billion ($7.30 billion), compared to €7.33 billion the previous year. The decrease can be attributed partly to currency depreciation against the euro.
Strong Performance in Like-for-Like Sales
However, on a like-for-like basis, Danone saw a solid growth of 6.2% in third-quarter sales, with volume/mix at minus 0.3% compared to minus 2.3% in the previous quarter. Analysts had predicted sales of €6.90 billion and a like-for-like growth of 4.7%, according to a company-compiled consensus.
CEO’s Confident Statement
Antoine de Saint-Affrique, Chief Executive of Danone, expressed confidence about the company’s future despite the challenging environment. This quarter marks the seventh consecutive quarter of delivery for Danone.