Vending

Danone lifts Q1 2022 sales

Logo provided.

April 22, 2022

Danone reported strong Q1 2022 sales on pricing and volume/mix gains over Q1 2021, according to a press release. Highlights include:

• Reported sales rose 10.2% from €5.6 billion ($6.03 billion) in Q1 2021 to €6.2 billion ($6.68 billion) in Q1 2022, and organic growth of 7.1% led by a 4.9% gain in price and 2.2% gain in volume/mix.
• Sales benefited from a positive foreign exchange impact of 2.2%, reflecting the appreciation of the British Pound, the U.S. Dollar and other Asian and Latin American currencies against the Euro.
• Europe posted sales growth of 5.7% on a like-for-like basis, driven by 3.1% growth in volume/mix and 2.6% in price.
• North America sales increased by 5.5% on a like-for-like basis, benefiting from a positive contribution of 1.3% from volume/mix and 4.2% from price.
• China, North Asia and Oceania sales increased by 15.3% on a like-for-like basis, led by 13.2% in volume/mix and 2.1% in price.

Shares traded at $11.91 today against a 52-week range of $10.21-$15.38.

"Sales were up 7.1% on a like-for-like basis in the first quarter, kicking-off a good start to 2022," CFO Juergen Esser said in the press release. "Growth was broad based across geographies and categories, and benefited from a positive contribution from both price and mix. Volumes held well especially in North America and Europe as we continued to navigate a highly volatile and inflationary environment."

The operating environment remains highly volatile, with sustained supply disruptions and broad-based inflation around mid-teens levels in 2022, the company noted.

In 2022, the company continues to expect price-led like-for-like sales growth between 3% and 5% and a recurring operating margin above 12%.