Danone has reported organic growth for the first nine months of 5.6% and for the quarter of 5.0%. The company reconfirmed its full-year targets for 2012.
Overall performance was solid, said the company, with contrasts from region to region: sales grew by over 10% in emerging markets and North America combined, and declined in Europe as deterioration continued in Southern Europe.
“Danone reported solid growth in sales for the first nine months of 2012, in line with full-year targets, thanks to very strong momentum continuing worldwide except in Europe,” said the company’s chairman.
“Emerging markets and North America posted further strong growth in the third quarter. Oikos scored additional gains in the United States, while in Russia Danone-Unimilk continued to build its product portfolio. In Asia, Africa-Middle East and Latin America, operations expanded very rapidly in all product categories.”
“Yet pressure on consumer spending in Europe continued, and the situation deteriorated further in Southern Europe, affecting sales for the business lines most exposed to this region.”
“Against this backdrop, our priorities are clear: we will continue to deploy our model in growth regions by investing in our product categories, our brands and our people. In Europe, we need to adapt our model to the slump in consumption and to the needs of our consumers, while building new sources of growth. Our teams will pursue these priorities with determination,” he concluded.
In fresh dairy products, sales were up only 0.7% on a like-for-like basis in the third quarter. The company’s waters business, however, did significantly better with 12.3% growth based on a 5.4% increase in volumes and a 6.9% rise due to price/mix.
Danone’s baby nutrition division reported robust growth in all geographical markets, with sales up 11.5% like-for-like in the third quarter of 2012. This includes a +3.6% rise in volume and +7.9% growth in value. Key to the division’s success is a very strong performance in Asia, particularly China, where the Dumex range—Danone’s flagship brand for baby nutrition in this country—has been completely revamped.
