Strong demand for yogurt and drinking water offsets the impact of powdered formula recall, leading to sales growth for Danone
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The company that produces Activia yogurt stated that same-store sales grew by 2.7% in the first quarter, in line with the average expectations of surveyed analysts. The company said that sales volume increased by 1.5%, while prices rose by 1.2%. The region including China, North Asia, and Oceania showed strong growth this quarter, whereas the professional nutrition segment in Europe was negatively affected by a formula recall and conflict in the Middle East. The company noted that its performance in the US market is improving, with North American sales rising by 1.5%. According to analysts at Jefferies, including David Hayes, in a report: "Meeting sales expectations, combined with comments regarding improved momentum in the US market and outperformance in the Chinese market, will provide reassurance."
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