Danone sells less water and sees a drop in turnover

French food company Danone is still experiencing the negative consequences of the corona measures that apply worldwide. This is evident from the quarterly figures that the company published this morning (Tuesday 20 April). In the first quarter of this year, sales decreased by 2020% to €3,3 billion compared to the first quarter of 5,7. The company sold more dairy and vegetable products, but significantly less water.

Sales in Europe and the United States decreased by 2,8%. In the other areas where Danone is active, turnover decreased by 4,2%. Danone notes that the first quarter in 2020 was very strong due to consumer hoarding during the first peak of the corona crisis. As a result, the figures are somewhat distorted.

(Vegetable) dairy performs strongly
Despite the contraction in turnover, the dairy and plant-based division performed well. The turnover in the first quarter of this was 1,6% higher than in the first quarter of 2020. Even though the first quarter of 2020 was already very strong. In Europe and North America in particular, turnover in this division grew, mainly driven by increased sales of vegetable 'dairy' products. Sales of plant-based products grew by more than 10% in some regions. In the first quarter, water sales fell by 11,6% compared to the same period in 2020. The main reason is the still low mobility of consumers, according to Danone.

For the rest of the year, Danone is more positive. The phasing out of corona measures is being taken into account now that vaccination is taking place at an ever faster pace. This could mean that the group's total revenue will grow in the second quarter compared to the second quarter in 2020.

New CEO
The company also announced that it is still looking for a new CEO. Last month, the previous CEO Emmanuel Faber kicked out at the request of some major shareholders. They found the company's profitability to be insufficient compared to competitors.

Steve Wissink

Stef Wissink is an editor at Boerenbusiness and writes about current market developments in the dairy and pig market. He also follows Dutch and international agribusiness.

s.wissink@boerenbusiness. Nl

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