Danone revenues climb 4% in quarter
April 24, 2007
by Eric Schroeder
PARIS — First-quarter sales climbed 4% to €3,673 million ($4,996 million) at Groupe Danone, marking the company’s second best quarterly performance in 10 years. Spurring the revenue gain was significant growth in the company’s fresh dairy products business, which saw sales rise to €2,155 million from €1,990 million in the same period a year ago, boosted in large part to "blockbuster" brands, which grew at close to 20% during the quarter.
Danone said its beverages business rose 7% to €1,012 million behind sustained superior performance in Latin America and solid results in Europe.
Biscuits and cereal products sales eased 15% on a reported basis to €506 million from €597 million, but grew 4% on an organic basis.
"This overall excellent performance is the result of the group’s continued focus on innovation and health positioning of its brands, and its expansion in developing markets," the company said. "As is visible in the first quarter results, the group’s broad-based growth strategy creates a diversified source of business that allows to limit the reliance on any particular geography."