Danone reports 'strong' performance in China
Shares in food group Danone rose by over 2pc yesterday in Paris to €67.40 after the company reported sales of €6bn in the first quarter of 2018, a 10.8pc increase year-on-year on a reported basis.
The result was driven by a "very strong" performance of the company's infant formula in China, where like-for-like sales growth in its early life nutrition business increased by over 50pc.
Infant formula products fall under the group's specialised nutrition business, which reported overall global sales growth of 14.5pc year-on-year in the three month period, according to the 2018 first quarter results from the company.
Organic sales at Danone increased by 4.9pc year-on-year during the period, with volume increasing by 1.1pc, while the company's pricing/mix improved by 3.8pc.
The update confirms that Danone is on "an improved pathway," said Davy analyst Cathal Kenny.
Mr Kenny went on to say that company's earnings margin delivery would be weighted towards the second half of the year, with the first half of the year impacted by inflationary cost pressures, including increases in transport costs in the US.
Emmanuel Faber, chairman of Danone, said that he was "very pleased" with the "strong" set of results.