Further Asian infant formula recovery drives Danone Q1 sales boost
As detailed in its Q1 results, published earlier today, Paris-based Danone achieved sales of €5.471bn for the three months ended March 31 2015 - up from €5.061bn in Q1 2014.
Early Life Nutrition sales increased 11.6% to €1.22bn on the back of the "international success of brands like Aptamil and Nutrilon."
In Europe, Q1 sales showed double-digit growth driven by the international success of brands like Aptamil and Nutrilon #Q12015
— Danone Group (@DanoneGroup) April 15, 2015In China, Danone infant formula brands "continued to benefit from category growth, with e-commerce expanding rapidly."
Nutrilon Platinum infant formula, launched by Danone in China in early 2014, "continued to win market shares among specialized distribution stores," it said.
However, sales of Dumex - impacted by the Fonterra whey protein concentrate (WPC) botulism scare - remained "well below levels observed in early 2013."
Double-digit infant formula sales growth was also reported across in Europe, Asia, Latin America and the Middle East, it said.
Fresh dairy sales down
Its Fresh Dairy Products business - best known for brands like Activia and Oikos - reported sales of €2.807bn, down from €2.809bn in Q1 2104.
Despite the "uncertain consumer environment" in Russia, sales of fresh dairy product sales were "solid," it said.
US fresh dairy sales were "in line with the category as a whole, allowing Danone to confirm its leading position."
As in previous quarters, Danone's European fresh dairy sales were down.
Meanwhile, the French firm's Medical Nutrition division - the subject of sales speculation for much of 2014 - "turned in a sold performance, particularly in Europe."
The UK, China and Brazil were the "main contributors" to a 9.1% like-for-like increase in Q1 sales, it said.
Lastly, its Waters division reported sales of €1.065bn for the period - up from €895m in Q1 2104.
On the back of its Q1 results, Danone confirmed its 2015 target of between 4% and 5% organic sales growth and "slight growth" in trading operating margin.
