Danone Sticks To Growth Forecast As Sales Rise
17 April 2012 - 8:21AM
Dow Jones News
Danone SA (BN.FR) Tuesday confirmed its revenue expectations for
2012, as the French food company continued to eke out sales growth
from a tough consumer environment in its main markets.
The company, whose brands include Activia and Evian, recorded
first-quarter sales of EUR5.12 billion, up from EUR4.76 billion a
year earlier, as solid business in water, baby nutrition and
medical products offset slower growth in its dairy division.
Analysts had expected first-quarter revenue of EUR5.06 billion.
Sales in the first quarter met the company's expectations, Chief
Financial Officer Pierre Henri Terisse said Tuesday in a conference
call with reporters.
Danone reiterated the company's previous guidance for 2012 of
sales growth of between 5% and 7% on a like-for-like basis which
excludes currency variations and acquisitions, a stable trading
operating margin and free cash flow of EUR2 billion.
"2012 got off to a strong start at Danone, with our solid 6.9%
increase in net sales reflecting an all-out focus on group
priorities," Chief Executive Frank Riboud said.
The company's dairy division, which represents close to 60% of
annual revenue, posted sales of EUR2.96 billion, up 3.8% on a
like-for-like basis, with "extremely vigorous" sales in Latin
America and Africa and the Middle East. Danone added that in the
Commonwealth of Independent States area and in the U.S., "action
plans are beginning to pay off with sales up in both volumes and
value this quarter". The division had posted a sales like-for-like
rise of 3% in the fourth quarter of 2011.
Sales of Danone's bottled water rose 16% to EUR841 million,
reflecting momentum in emerging markets and sound performances in
mature markets, the company said.
European consumer goods companies Nestle SA (NESN.VX) and
Unilever NL (UN) will report sales on April 20 and April 26,
respectively.
Danone shares have risen over 9% in the past six months,
outpacing the Paris CAC-40 index, which is back to the same level
as October 2011. The shares closed Monday at EUR51.58.
-By Geraldine Amiel and Nadya Masidlover, Dow Jones Newswires;
+33 1 4017 1740; nadya.masidlover@dowjones.com
(Inti Landauro contributed to this article.)
Unilever NV (NYSE:UN)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Unilever NV (NYSE:UN)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
