Danone 1st Half Net Profit Fell; Raises 2022 Sales Growth Guidance
July 27 2022 - 2:15AM
Dow Jones News
By Giulia Petroni
Danone SA said Wednesday that profit fell in the first half of
2022 while sales rose, and raised its organic sales growth guidance
for the full year.
The French food company said net profit in the period was 737
million euros ($749.4 million), down from EUR1.07 billion the year
earlier.
Sales increased to EUR13.33 billion from EUR11.84 billion the
previous year. On an organic basis, sales were up 7.4%. In the
second quarter, sales grew 7.7% to EUR7.07 billion, led by a price
up of 6.8%.
Danone registered organic sales growth of 8.9% in North America,
driven by coffee creamers, yogurts and plant-based, and growth of
5.1% in Europe led by specialized nutrition and waters. In China,
North Asia and Oceania sales grew 3.3% organically mainly thanks to
specialized nutrition, while the water brand Mizone was negatively
affected by lockdowns and Covid-19-related restrictions.
In the full year, Danone said it now sees price-led organic
sales growth of between 5% and 6%, from previous expectations of
between 3% and 5%. It confirmed it expects the recurring operating
margin to be above 12%.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
July 27, 2022 02:00 ET (06:00 GMT)
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