(News Bulletin 247) – The agri-food group delivered growth above expectations, thanks in particular to its dairy products division. The 2024 objectives are confirmed.

Long lagging behind its great Swiss rival Nestlé, Danone has completely turned things around in recent quarters. While the Swiss group is accumulating difficulties to the point of having recently changed its general director, the French company is making a series of good publications and rolling out its strategy.

This is still the case in the third quarter. Danone announced Thursday that it had generated revenues of 6.91 billion euros over this period, up 4.2% excluding currency and scope effects. In comparison, Nestlé only saw its growth amount to 1.9% over this same period and on these same bases.

The group also exceeded the consensus of analysts who expected like-for-like growth limited to 3.9%, according to Jefferies.

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Bad weather for mineral waters

In detail, the EDP division, i.e. dairy and plant-based products, grew by 4.1% on a comparable basis, compared to 3.3% expected by the consensus, “specialized nutrition” (infant milk and medical nutrition). ) increased its revenues by 5.2% versus 4.7% expected while the “waters” division was a little disappointing (3.2% versus 4.1% expected). The underperformance of the water division compared to the consensus can be explained by the bad weather (which therefore weighed on sales) in Europe and Mexico, estimates Jefferies.

Danone notably benefited from an impact of volumes and mix (the distribution of sales towards higher value products and regions) of around 3.6 percentage points. “This impact is twice as significant as in our own forecasts,” appreciates Oddo BHF.

By region, North America posted growth of 5.8%, driven by coffee-related products and yogurts. Europe was less dynamic (-1.4%) while the “China, Asia and Oceania” zone saw its revenues increase by 8% on a comparable basis, thanks to the performance of infant milks and its brand. Mizone mineral water in China.

At the end of this publication, the company confirmed its objectives for 2024, namely growth in its turnover on a comparable basis of between 3% and 5% and a “moderate” improvement in its current operating margin.

On the Paris Stock Exchange, the market appreciates the copy of the agri-food group, the title gaining 2.4% around 3:40 p.m.

“With a ‘price to earnings expected over the next twelve months’ multiplier of more than 17, Danone shares needed a good surprise on volumes, so the publication is sufficient to carry the title this Thursday,” underlines Jefferies .

“Against the backdrop of a somewhat volatile third-quarter earnings period so far, Danone’s modest (volume-driven) outperformance relative to the company-compiled consensus and reiteration of 2024 targets are welcome.” , for its part appreciates Royal Bank of Canada.