PARIS (Reuters) – Danone confirmed its financial objectives for 2024 on Thursday after a 4.1% like-for-like increase in its turnover in the first quarter.

The agri-food group continues to benefit from price increases which do not affect its volumes: the volume/mix effect stands at +1.2% with a price effect of +2.9%.

“We are having a good start to the year, evidenced by both quality growth and the continued implementation of Renew Danone,” commented General Manager Antoine de Saint-Affrique in a press release, referring to the strategic plan. deployed by the group.

In published data, however, turnover fell by 2.5% to 6.79 billion euros, due to a negative scope effect (-5%) linked to the deconsolidation of the activities of the EDP branch. in Russia and unfavorable exchange rate effects (-3.2%).

For 2024, Danone continues to expect like-for-like revenue growth of between 3% and 5% and a “moderate” improvement in current operating margin.

On the Paris Stock Exchange, Danone shares gained 1.4% to 59.34 euros around 07:55 GMT compared to an increase of 0.5% for the CAC 40 at the same time.

Like its competitors Nestlé and P&G, Danone is one of the large consumer groups to have drastically raised its prices in the last two years to cope with the rise in the cost of inputs. This has led to often difficult negotiations with retail groups like Carrefour and Tesco.

During a conference call, Danone CFO Juergen Esser indicated that the vast majority of pricing negotiations with distributors in Europe “have been completed.”

“Which means we will resume our activities as normal,” he said.

(Written by Blandine Hénault with Dominique Vidalon and Richa Naidu in London, edited by Tangi Salaün)

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