Danone's Q3 2023 net sales reached €6,906 million
Source: The DairyNews
Danone's Q3 2023 net sales reached €6,906 million, marking a commendable 6.2% increase on a like-for-like basis.
This growth was supported by a sequential improvement in volume/mix (-0.3%), attributed to the transformative efforts in Essential Dairy and Plant-Based (EDP) operations in Europe.
Reported sales were impacted by a negative scope effect (-6.2%), primarily due to the deconsolidation of EDP Russia operations from July 2023. However, hyperinflation contributed positively to reported sales, showing a growth of +1.8%.
In a statement, Antoine de Saint-Affrique, CEO of Danone, highlighted the positive outcomes of their strategic approach, with the seventh consecutive quarter of successful implementation leading to a noteworthy sales increase of +6.2% on a like-for-like basis. The focus remains on addressing underperforming areas while strategically investing in high-performing segments. Notable growth was observed in China, with Mizone's robust competitive growth and progress in EDP Europe's transformation. Strategic investments in Medical Nutrition also contributed to capacity expansion and portfolio reach.
Despite a challenging business landscape, confidence in the future prevails. The full-year guidance is revised, anticipating a like-for-like sales growth ranging between +6% and +7%. The commitment to deploying the business model consistently and increasing reinvestments in brands and innovation remains steadfast.
In the third quarter, consolidated sales reflected a significant +6.2% increase on a like-for-like basis. Europe witnessed a +5.1% growth in sales, driven by a rise in price by +9.2%, offset by a decline in volume/mix of -4.1%. EDP's portfolio transformation in Europe showcased positive results, with Actimel, Danone, YoPro, and Alpro brands leading the way. North America experienced a +3.9% growth, driven by a +4.0% increase in price and resilient volume/mix (-0.2%). China, North Asia & Oceania posted a robust +8.4% sales growth, with China showing revenue mix rebalancing in Specialized Nutrition. Latin America witnessed a +8.2% sales growth, and the Rest of the World exhibited a +9.7% increase, notably contributed to by Specialized Nutrition in South-East Asia and India.
Acknowledging the decision of Russian authorities, Danone revealed that Danone Russia (EDP) is under temporary external administration by the Russian Federal Agency for State Property Management (Rosimushchestvo). A change in the Board of Directors and CEO of Danone Russia (EDP) was indicated on July 18, 2023. Although Danone no longer controls the management of EDP operations in Russia, it retains legal ownership. Consequently, Danone fully deconsolidated its EDP Russia entities from July 2023, excluding them from reported data and the like-for-like perimeter.
Reported sales were impacted by a negative scope effect (-6.2%), primarily due to the deconsolidation of EDP Russia operations from July 2023. However, hyperinflation contributed positively to reported sales, showing a growth of +1.8%.
In a statement, Antoine de Saint-Affrique, CEO of Danone, highlighted the positive outcomes of their strategic approach, with the seventh consecutive quarter of successful implementation leading to a noteworthy sales increase of +6.2% on a like-for-like basis. The focus remains on addressing underperforming areas while strategically investing in high-performing segments. Notable growth was observed in China, with Mizone's robust competitive growth and progress in EDP Europe's transformation. Strategic investments in Medical Nutrition also contributed to capacity expansion and portfolio reach.
Despite a challenging business landscape, confidence in the future prevails. The full-year guidance is revised, anticipating a like-for-like sales growth ranging between +6% and +7%. The commitment to deploying the business model consistently and increasing reinvestments in brands and innovation remains steadfast.
In the third quarter, consolidated sales reflected a significant +6.2% increase on a like-for-like basis. Europe witnessed a +5.1% growth in sales, driven by a rise in price by +9.2%, offset by a decline in volume/mix of -4.1%. EDP's portfolio transformation in Europe showcased positive results, with Actimel, Danone, YoPro, and Alpro brands leading the way. North America experienced a +3.9% growth, driven by a +4.0% increase in price and resilient volume/mix (-0.2%). China, North Asia & Oceania posted a robust +8.4% sales growth, with China showing revenue mix rebalancing in Specialized Nutrition. Latin America witnessed a +8.2% sales growth, and the Rest of the World exhibited a +9.7% increase, notably contributed to by Specialized Nutrition in South-East Asia and India.
Acknowledging the decision of Russian authorities, Danone revealed that Danone Russia (EDP) is under temporary external administration by the Russian Federal Agency for State Property Management (Rosimushchestvo). A change in the Board of Directors and CEO of Danone Russia (EDP) was indicated on July 18, 2023. Although Danone no longer controls the management of EDP operations in Russia, it retains legal ownership. Consequently, Danone fully deconsolidated its EDP Russia entities from July 2023, excluding them from reported data and the like-for-like perimeter.
