Danone 3Q Sales Rose; Reiterates 2021 Guidance
October 19 2021 - 2:06AM
Dow Jones News
By Giulia Petroni
Danone SA said Tuesday that sales rose in the third quarter,
with strong growth across geographies, and reiterated guidance for
the full year.
The French food company said quarterly sales came in at 6.16
billion euros ($7.14 billion) compared with EUR5.82 billion for the
previous-year period. An analysts' consensus compiled by the
company had forecast the figure at EUR6.06 billion.
On a like-for-like basis, sales increased 3.8% on year.
Danone's essential dairy and plant-based business continued to
experience strong momentum, particularly in Europe and North
America, but the plant-based portfolio suffered the impact of
supply and logistic disruptions in the quarter.
The waters business recorded mid-single-digit growth in Europe,
benefiting from improved out-of-home mobility, while specialized
nutrition was driven by adult nutrition and saw return to growth of
infant milk formula in China.
The company backed its 2021 guidance and said it expects to
return to profitable growth in the second half of the year and for
recurring operating margin to be broadly in line with the previous
year.
Danone also said it expects a broad-based acceleration of
inflation in milk, ingredients, packaging and logistics.
"What started as increased inflation on material costs evolved
into widespread constraints impacting our supply chain in many
parts of the world," said Chief Financial Officer Juergen
Esser.
"That said, we are putting even greater focus on productivity
and pricing actions to mitigate the impact on our performance," he
said.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
October 19, 2021 01:51 ET (05:51 GMT)
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