Danone: Sales Are Ahead on Better-Than-Expected Volume/Mix, but Guidance Reiterated

Danone's first-quarter sales update included like-for-like, or LFL, sales up 4.1% year over year, ahead of company-compiled consensus of 3.4% growth. Within this, volume/mix was up 1.2%, ahead of consensus (up 0.8%), while pricing was up 2.9% versus 2.7% for consensus. Volume/mix held up well across categories, driven by the waters division (up 3.9%) and the good performance of Evian and Volvic. The group's largest business, EDP—essential dairy and plant-based products— achieved 0.8% volume/mix growth for the period despite shipment disruptions, though the company does not comment on the actual impact. This follows a positive 2% volume/mix performance in the fourth quarter from negative 0.8% in the third quarter and negative 3.3% in the second and first quarters of last year, reflecting good momentum in turning around the business. LFL sales for the specialized nutrition business increased 3.8% (up 4% in China, North Asia, and Oceania) on a high comparison base.