A trompe-l’oeil reduction. The agri-food giant Danone confirmed its objectives for 2024 on Thursday after a turnover down 2.5% in the first quarter under the effect of its withdrawal from Russia and exchange rates but which, without these elements , climbs thanks in particular to the increase in volumes sold. The parent company of Activia yogurts, Evian waters and Blédina small pots sold 6.79 billion euros worth of products over the period, which is more than expected by Bloomberg and FactSet analysts, details a press release.
The group maintained its objective of like-for-like revenue growth of between 3% and 5% for the year, accompanied by a
“moderate improvement in current operating margin”
. It is mainly the sale of its activities in Russia, separated from its accounts in July 2023 and for which the group obtained in March the Russian authorizations required to sell them to a businessman linked to the Chechen leader Ramzan Kadyrov, who weighed on its published turnover. The effect of exchange rates also weighed on its results.
Comparable turnover up 4.1%
But not taking these elements into account, Danone's turnover increased by 4.1%. On a like-for-like basis, it increased in all areas where the group is present, including its three key areas Europe/North America/China, and in all its branches of activity. Activity is driven by the effect of the increase in the price of its products (+2.9%) but also, for the second consecutive quarter, by an increase in volumes (+1.2%).
The group highlights a
“solid start to the year in Europe and North America in a context of price normalization”
and also welcomes a revival in sales of its Mizone drinks brand in China. Managing Director Antoine de Saint-Affrique welcomed in the press release
“a good start to the year”
in an
“environment which remains difficult”
.
Since his arrival at the head of the group in September 2021, he has initiated a rationalization of the brand portfolio to shed activities deemed non-essential or less efficient. Since the beginning of the year, this has resulted in the finalization of the sale of Michel & Augustin as well as its Horizon Organic and Wallaby milk and dairy products activities in the United States. Danone plans to present
“the next chapter”
of its strategic plan at a meeting with investors in June in Amsterdam.