Higher prices lift Danone quarterly sales, Mizone in China weighs

Danone Sees 4% Q3 Sales Growth as Price Hikes Offset China Weakness

Danone’s Q3 2023 Financial Performance Overview

By Dominique Vidalon

PARIS, Oct 28 (Reuters) - Danone reported better-than-expected organic sales growth of 4% for the third quarter on Wednesday, led by price increases to cope with rising costs, while its struggling Mizone water business in China amid adverse weather weighed on volume growth.

The French consumer goods group, whose brands include Evian and Badoit water and Activia yogurt, kept its 2026 full year targets.

Company Outlook and CEO Statement

• "In an environment that remains volatile, we reiterate our full-year guidance with confidence," CEO Antoine de Saint-Affrique said in a statement.

Q3 Sales Figures and Analyst Expectations

• Danone said third-quarter sales reached €7.233 billion, a 4.0% rise on a like-for-like basis, compared with expectations of 3.7% rise in a company-compiled analysts' consensus.

• The company reported overall prices rose 3.6% in the third quarter, while volumes were up just 0.4%.

Regional Performance Breakdown

Asia Pacific and China

• In Asia Pacific, like-for-like sales growth was 3.6% with a sustained performance in Specialised Nutrition and in Essential Dairy Products, but China waters was impacted by Mizone amid a poor season with adverse weather conditions prompting inventory management.

• Mizone's sales decline resulted in an about one percentage point negative impact on the group's like-for-like sales growth in the third quarter, Danone said.

Americas and North America

• In the Americas, like-for-like sales growth was 4.4%. In Essential Dairy Products (EDP), high Protein continued to drive growth across the region.

• In North America, decisive actions are in place to regain momentum in EDP, focusing on step-changing execution and regaining innovation leadership through a strong product pipeline beyond high protein, the group said.

2026 Guidance and Mid-Term Aims

• Danone reiterated its 2026 guidance in line with its mid-term aims of like-for-like sales growth of 3% to 5%, with recurring operating income growing faster than sales.

(Reporting by Dominique VidalonEditing by Tomasz Janowski)