Danone Foresees Continued Growth in China Market Despite Challenges
Danone (LON:0KFX) has emphasized China's enduring significance as a pivotal growth engine for the global leader in yogurt production, foreseeing sustained expansion in the medical nutrition and beverages sectors.
Addressing the impact of China's stringent no-COVID policy on Danone's Chinese vitamin drink brand Mizone in 2022, Chief Financial Officer Juergen Esser highlighted a strategic turnaround in 2023, with China emerging as their "primary growth driver."
In an interview with Reuters, Esser affirmed, "We're poised for continued rapid growth in China," underscoring the nation's aging demographic as a catalyst for Danone's medical nutrition segment, complemented by robust performance in the beverages category.
Despite these obstacles, Danone surpassed first-quarter volume/mix expectations, with a notable 6.9% surge in China propelling a 1.2% overall increase for the group. Particularly noteworthy was the double-digit percentage sales growth in the Waters segment on a like-for-like basis.
In an interview with Reuters, Esser affirmed, "We're poised for continued rapid growth in China," underscoring the nation's aging demographic as a catalyst for Danone's medical nutrition segment, complemented by robust performance in the beverages category.
However, challenges persist for Danone's infant nutrition business, grappling with dwindling birth rates, Esser acknowledged.
Despite these obstacles, Danone surpassed first-quarter volume/mix expectations, with a notable 6.9% surge in China propelling a 1.2% overall increase for the group. Particularly noteworthy was the double-digit percentage sales growth in the Waters segment on a like-for-like basis.
