Danone posts 7.1% Like-For-Like Sales Growth For Q1 Driven By Pricing

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Danone posts 7.1% Like-For-Like Sales Growth For Q1 Driven By Pricing
Danone posts 7.1% Like-For-Like Sales Growth For Q1 Driven By Pricing

Danone has reported Q1 net sales growth of 7.1% on a like-for-like basis, in what the yogurt maker described as a “good start to 2022”.

The company posted first-quarter net sales of €6.24 billion, compared to €5.66 billion in the year-ago quarter. Price and volume/mix contributed 4.9% and 2.2%, respectively.

Europe and North America recorded like-for-like sales growth of 5.7% and 5.5%, respectively.

In Europe, growth was led by Danone’s Specialized Nutrition and Waters businesses, while the company’s Essential Dairy and Plant-based (EDP) division delivered a “soft quarter,” with plant-based growing ‘low-single-digit’ and dairy posting flat growth.

In North America, growth was driven by all categories, with continued strong momentum in yogurt led by Oikos, Two Good, Activia and Danimals, and a good quarter for coffee creamers.

The company’s China, North Asia & Oceania zone saw like-for-like sales growth of 15.3% led by Specialized Nutrition, while in the rest of the world growth was led by EDP and Waters.

“Sales were up 7.1% on a like-for-like basis in the first quarter, kicking-off a good start to 2022,” said Danone CFO Juergen Esser.

“Growth was broad-based across geographies and categories, and benefitted from a positive contribution from both price and mix. Volumes held well especially in North America and Europe as we continued to navigate a highly volatile and inflationary environment.”

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Danone says that it continues to expect price-led like-for-like sales growth in the region of 3-5% for the full year.