Vending

Danone lifts Q3 2022 sales, beats analyst expectations

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October 28, 2022

Danone S.A., a Paris-based multinational, lifted its Q3 2022 sales over the prior year period, boosted by pricing and currency exchange impact, according to a financial report. Highlights include:

• Sales rose 19.1% from €6.16 billion ($6.13 billion) in Q3 2021 to €7.33 billion ($7.29 billion) in Q3 2022, benefiting from a positive currency exchange impact of 7.6%, reflecting in particular the appreciation of the U.S. dollar and various Asian and Latin American currencies against the euro.
• Sales were also driven by a positive organic contribution of hyperinflation geographies to growth of 1.4%, as well as a slightly negative scope effect of 0.2%, resulting mainly from the impact of the disposal of Vega.
• Sales increased 9.5% on a like-for-like basis, with price up 10.9% and volume/mix down 1.4%.
• Europe posted sales growth of 6% on a like-for-like basis, led by specialized nutrition and waters, driven by 8% growth in price while volume/mix declined by 2%.
• North America sales were up by 11.2 on a like-for-like basis, driven by balanced growth across categories and by accelerated pricing, up 10.2%, and by the continued roll-out of Revenue Growth Management initiatives.
• China, North Asia and Oceania posted sales growth of 6.8%, led by specialized nutrition in China and essential dairy and plant-based products in Japan, with price up 1.6% and volume/mix up 5.2%.
• The rest of the world registered sales growth of 13.6% with 19.5% price growth in all categories.
• In Latin America, sales were up double digits, with all categories contributing.

Shares traded today at $9.94 against a 52-week range of $9.05-$13.36.

The €7.33 billion ($7.29 billion) in quarterly revenue beat analysts' expectations of €7.05 billion ($7 billion), according Marketwatch.

"Q3 was another quarter of strong growth, with sales up 9.5% on a like-for-like basis, led by a sequential growth acceleration across all our categories and geographies," Antoine de Saint-Affrique, CEO at Danone S.A., said in the press release. "We now expect LFL sales growth between 7% and 8% in the full-year 2022."