Like-For-Like Sales At Danone Up 1.4% In Third Quarter, Despite Morocco Impact
Dairy giant Danone has posted a like-for-like sales growth of 1.4% for the third quarter of the year, posting sales of €6.19 billion for the period.
However, reported sales at the business were down 4.4%, the group said, with volume growth dropping by 1.9%.
Its Europe and North American division posted a like-for-like sales decline of 1.0% in the third quarter, with reported sales down 1.6% and volume down 0.5%.
Its Rest of The World division posted like-for-like sales growth of 4.2% during the period.
Over the first nine months of the year, Danone said that like-for-like sales were 3.1% higher, with reported sales falling by 0.5% and volume falling by 0.5%.
Danone noted that if Morocco, where the group has faced the ‘consequences of a consumer boycott’, were excluded from the results, sales were up 2.2% on a like-for-like basis, and by 3.8% for the nine month period.
Reported sales were impacted by a negative currency impact particularly in terms of the Argentinian peso, Turkish lira and Brazilian real, which depreciated by more than 20% compared to the same period last year.
Return To Growth
“In the latest quarter, we have seen an encouraging return to growth in Essential Dairy and Plant-Based, alongside strong momentum in Waters,” commented Emmanuel Faber, Danone chairman and chief executive.
“This demonstrates how Danone is balancing growth across its businesses. Our performance in EDP and Waters compensated for challenging conditions in China where Early Life Nutrition shows changes in market dynamics following a period of exceptional growth.
“We also have the foundations in place to navigate current emerging market volatility and currency headwinds, which will enable us to continue to deliver sustainable profitable growth. As a result, we have today reaffirmed our guidance for the full-year.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.