PARIS, France – Danone, the world’s leading producer of fresh dairy products by volume, released yesterday (April 26) its first quarter results reflecting a strong start of the year. In the first quarter of 2023, consolidated sales stood at €6,962m, up +10.5% on a like-for-like basis, with a +10.3% contribution from price and a +0.2% contribution from volume/mix.
On a reported basis, sales increased by +11.6%, benefiting notably from a slightly positive Forex impact of +0.7%, and a positive effect of +1.4% coming from the contribution of hyperinflation. Reported sales were also impacted by a negative scope impact of -0.6%, resulting from the deconsolidation of the Waters business in Argentina.
All geographies contributed to the strong start to the year. In Europe, sales were up +6.2% sale on a like-for-like basis, driven by +10.2% growth in price and -4.0% in volume/mix. Growth was led by France, UK and Poland, and by the good performance of Danone, Actimel, Alpro, evian and Aptamil. In parallel, European countries continued to progress on the transformation of the EDP portfolio.
In North America, the strong and balanced growth momentum continued, supported by consistent investments and execution: sales were up +11.8% on a like-for-like basis, driven by +11.0% growth in price and +0.8% growth in volume/mix, led by Oikos and Activia in Yogurt, and by International Delight and Stok in Coffee creations, while Plant-based delivered moderate growth on a high base.
China, North Asia & Oceania posted sales growth of +16.0% on a like-for-like basis, led by +1.7% growth in price and +14.3% growth in volume/mix. In China, Infant Nutrition experienced a strong start to the year fueled by higher shipments, while Adult and Pediatric Specialties both grew well into double digits.
In Waters, Mizone showed an encouraging start to the year, amid improving operating conditions, while in EDP, Japan delivered another quarter of double-digit growth, led by Oikos and Danone.
Latin America posted sales growth of +12.6% on a like-for-like basis, led by Mexico and Brazil, with a +12.7% increase in price and a -0.1% decline in volume/mix. Dairy performance was sustained by Danone, Activia, Danette and YoPro brands, while Waters growth was driven by the good momentum of Bonafont, especially in small formats and Aquadrinks.
Rest of the World registered sales growth of +11.8%, with price up +12.9% and volume/mix down -1.1%. Volume/mix growth was positive in the quarter excluding EDP Russia, benefitting notably from calendar effects. South-East Asia delivered mid-teens growth on a low base, sustained by both Waters and Specialized Nutrition.
2023 Guidance upgrade
Danone said it expected like-for-like 2023 sales growth of between 4% and 6%, having previously forecast 3%-5% growth.
