News Milk
Danone volume declines slightly, but turnover is higher
Danone has seen its third-quarter turnover increase by 3,8%, reaching €6,16 billion. Although this was several tenths of a percent higher than analysts had previously forecast, the growth is considerably lower than in the second quarter.
Revenue growth was broad-based. In Europe and North America, sales increased by 3,8%, mainly driven by sales of the dairy and vegetable division and the recovery of water sales in Europe. In the rest of the world, sales grew 3,7%. The sales growth was mainly based on higher product sales prices, volumes decreased by 0,8%. Adjusted for exchange rates, sales grew 5,8%.
Volumes smaller
Although turnover increased, the volumes sold were somewhat lower than in the same period last year. This was mainly caused by declining sales of 'specialized products'. This branch, which produces custom-made specialties aimed at both children and adults, saw its sales volume fall by around 5%. However, the company does speak of recently improved performance in the sales of its baby milk powders in China. The 'essential dairy & plant-based' branches (which also include dairy products) and 'waters' saw volumes increase slightly. More product was sold, especially in Europe.
Commenting on the third quarter figures, CFO Juergen Esser called the results solid. He did warn about the cost increases that are currently occurring throughout the chain. However, it has increased the company's focus on further improving productivity and correct pricing, Esser said. As a result, the company maintains its previous expectations for the results to be achieved in 2021. The operating margins are therefore at a comparable level as in 2020.
Steve Wissink
© DCA Market Intelligence. This market information is subject to copyright. It is not permitted to reproduce, distribute, disseminate or make the content available to third parties for compensation, in any form, without the express written permission of DCA Market Intelligence.
