By Dominique Vidalon
PARIS (Reuters) -French food group Danone beat third-quarter sales expectations on Thursday, boosted by higher sales volumes as price hikes slowed, and reflecting strong demand in North America for high-protein products, coffee creamers and waters.
The world’s largest yoghurt maker kept its forecast for 2024 like-for-like sales growth of between 3% and 5%, with a moderate improvement in recurring operating margin.
“We feel very confident to deliver within this corridor, even if consumer confidence is a bit soft,” Finance Chief Juergen Esser said.
The maker of Activia yoghurt, Evian water and Aptamil infant milk posted a 4.2% rise in third-quarter like-for-like sales to 6.826 billion euros ($7.36 billion), above analysts’ expectations for a 3.9% rise in a company-compiled consensus.
Sales volumes rose by 3.6% in the third quarter, compared to a 2.9% increase expected by analysts polled in a company-provided consensus.
The company raised its prices by 0.7% during the period, less than the previous quarter’s increase of 1%, and less than 0.9% seen in the consensus.
“Volumes have been a particular focus for the market through Q3, and this bodes well for Danone today,” Bernstein analysts said in a note.
Consumer goods companies such as Danone, Nestle and Unilever (LON:ULVR) are slowing price hikes after three years of steep increases following the COVID-19 pandemic, as shoppers hit by a cost-of-living crisis turn to cheaper, non-branded options.
Last week Nestle cut its full-year outlook for organic sales growth to about 2%, following weaker than expected nine-month underlying sales growth.
($1=0.9275 euros)