PARIS (Reuters) – Danone on Wednesday raised its revenue growth forecast for 2023 on the back of double-digit sales growth in the first quarter, driven in particular by price increases.
The agri-food group is now counting on an increase in sales between 4% and 6% on a like-for-like basis for the whole of the year, against an increase expected between 3% and 5% previously.
The objective of a “moderate improvement” in the current operating margin in 2023 is confirmed.
In the first quarter, turnover increased by 10.5% like-for-like, to 6.962 billion euros, beyond the forecast of a 7.3% increase given by the consensus provided by the group .
This is the strongest growth rate recorded in ten years.
The group’s three divisions, EDP, Specialized Nutrition and Waters, contributed to the growth in sales over the quarter.
Like its competitors, Danone raised its prices to fight against rising costs despite the slowdown in volumes. In the first quarter, the price increase reached 10.3% with a 0.2% growth in volumes.
Its Swiss competitor Nestlé on Tuesday reported slightly better-than-expected sales for the first quarter, during which it raised prices by 9.8% and recorded a 0.5% drop in volumes.
“This first quarter has seen a solid start to the year 2023”, commented in a press release the general manager, Antoine de Saint-Affrique, who is leading a group reorganization plan called “Renew Danone”.
“This quarter demonstrates, once again, our steady progress in deploying the different pillars of our Renew Danone strategy,” he added.
(Written by Blandine Hénault, with Dominique Vidalon, edited by Matthieu Protard)
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