With price increases easing somewhat, Danone sees its sales volumes picking up again – in all regions and all categories. The multinational looks confidently to the future in a challenging environment.
Prices under control
Much like in the second quarter, Danone found out that it pays to keep prices under control. Its comparable sales rose 4.2 % to 6.8 billion euros in the third quarter, thanks to 3.6 % rise in volumes, while prices went up just 0.7 %.
In Europe, prices actually went down 1 %, while volumes grew 2.4 %. Water sales grew despite the weaker weather, but especially the dairy and vegetable division (with star results from Alpro, Actimel and YoPro) performed very well. North American sales went up 5.8 %, driven by a 4.9 % volume growth and a 0.9 % price increase. Protein-rich products, coffee creamers and waters performed strongly on the American markets. The other regions also delivered strong performances.
The upturn allows Danone to stick to its earlier outlook: a comparable sales growth between 3 and 5 %, with a slight margin improvement. The results contrast with the weak figures published by competitor/rival Nestlé last week.
