Danone Sales Surge Driven by Healthier Product Demand
Source: dairynews.today
Danone experiences a significant rise in sales fueled by demand for healthier products, with a 24% stock increase over the past year.
Danone has reported a robust rise in sales, bolstered by the growing demand for protein-rich yogurts in North America and infant formula in China. Comparable store sales increased by 4.3% to €6.8 billion (US$7.8 billion) in the first quarter, surpassing the 4% growth anticipated by analysts. However, some analysts expressed disappointment with Danone's volume-mix growth of 1.9%.
Despite an initial dip of about 1% in early Paris trading, Danone's shares have climbed 24% over the past 12 months, outperforming competitor Nestlé. Under CEO Antoine de Saint-Affrique's leadership, the company is undergoing a turnaround, leveraging products that promote gut health as a strategic move to meet the increasing global demand for healthy diets, notably in the U.S., which aligns with the adoption of obesity management medications like Wegovy by Novo Nordisk.
The performance of Danone’s dairy, plant-based, water, and specialized nutrition divisions outpaced sales growth expectations for the first quarter. Withstanding logistical disruptions that affected early-year distribution in North America, the company maintained its annual forecast of 3%-5% growth in comparable store sales, with prices rising by 2.4% during the period. However, Danone faces challenges due to U.S. tariffs under President Donald Trump that pressure the company to balance volume growth with price competitiveness.
Despite an initial dip of about 1% in early Paris trading, Danone's shares have climbed 24% over the past 12 months, outperforming competitor Nestlé. Under CEO Antoine de Saint-Affrique's leadership, the company is undergoing a turnaround, leveraging products that promote gut health as a strategic move to meet the increasing global demand for healthy diets, notably in the U.S., which aligns with the adoption of obesity management medications like Wegovy by Novo Nordisk.
The performance of Danone’s dairy, plant-based, water, and specialized nutrition divisions outpaced sales growth expectations for the first quarter. Withstanding logistical disruptions that affected early-year distribution in North America, the company maintained its annual forecast of 3%-5% growth in comparable store sales, with prices rising by 2.4% during the period. However, Danone faces challenges due to U.S. tariffs under President Donald Trump that pressure the company to balance volume growth with price competitiveness.
