Vending

Danone improves Q3 2021 sales, plans to sell Denmark water business

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November 19, 2021

Danone improved its sales in Q3 2021 over the prior year, according to an earnings release.

The company also announced it has agreed to sell Aqua d'Or, its water and beverage business in Denmark, to Royal Unibrew, a Denmark-based brewing and beverage company for an undisclosed sum. The closing of the transaction is subject to customary conditions.

Sales rose 3.8% from €5.82 billion ($6.59 billion) in Q3 2020 to €6.2 billion ($7.02) on a like-for-like basis for Q3 2021. On a reported basis, sales increased by 5.8%, benefiting from a positive impact of exchange rate of 0.8%, reflecting the appreciation of the Chinese Renminbi, the Mexican Peso and the British Pound against the Euro while the U.S. dollar and other emerging currencies remained broadly stable versus last year.

Reported sales also benefited from 0.7% organic contribution of hyperinflation geographies to growth, as well as a slightly positive scope effect of 0.3%, mainly resulting from the combined effects of the integration of Harmless Harvest and Follow Your Heart and the disposal of Vega.

Essential dairy and plant-based products posted sales growth of 4.1% on a like-for-like basis, reflecting a 0.6% increase in volume and 3.5% in value.

Specialized nutrition sales increased by 2.9% on a like-for-like basis, with a decrease of 5.3% in volume and an increase of 8.2% in value.

Waters sales increased by 4.6% on a like-for-like basis, led by volumes up 2.4% and value 2.1%.

Shares traded today at $12.67 against a 52-week range of $11.96-$15.38.

"Today's results further underscore our progress to profitable growth," CFO Juergen Esser said in the press release. "Our actions and focused delivery across all parts of the company ensured that all categories contributed to a solid performance this quarter.

"Our essential dairy and plant-based business continued its strong momentum, particularly in Europe and North America, with market share gains on key platforms.

"Our waters business, led by a strong performance in Europe, benefited from the improved out of home mobility. And our specialized nutrition business also saw good dynamics driven by adult nutrition and the return to growth of infant milk formula in China."

Despite short-term uncertainties, a gradual reopening of economies is assumed to continue as vaccination programs are rolled out. Meanwhile, a broad-based acceleration of inflation in milk, ingredients, packaging and logistics is expected.