USA – Danone has reported a strong performance in its recent third-quarter results, demonstrating a commitment to “competitive growth and quality growth.”
The company’s Chief Financial Officer, Juergen Esser, highlighted that this strategy has been effective, particularly as Danone registered a significant increase in volume-mix.
This accelerated to 3.6% compared to 2.9% in the previous quarter and rebounding from a decline of 0.3% in the same period last year
Despite the ongoing challenges of “soft” consumer demand, particularly noted across the packaged food industry, Danone’s sales figures reflect resilience.
Total reported sales for the quarter reached €6.8 billion ($7.3 billion), marking a 1.2% decrease. However, when adjusted for like-for-like growth, sales were up by 4.2%.
This indicates that Danone’s strategic focus is yielding positive outcomes, with all geographical regions and business groups—including essential dairy and plant-based products, specialized nutrition, and water—reporting positive growth.
In Europe, the company’s performance was particularly notable, with a volume-mix growth of 2.4%, driven largely by its essential dairy and plant-based products, especially its high-protein yogurt range.
Danone’s investment in brand equity and selective pricing strategies are beginning to pay off, reinforcing its competitive stance in the market.
In North America, volume-mix growth was recorded at 4.9%, with strong performance noted in the yogurt and coffee segments
Asia has also been a bright spot for Danone, with robust growth reported in China (10.2%) and North Asia (8.9%).
Esser expressed confidence in the sustainability of this growth, citing the diversification of performance across various product lines rather than reliance on a few key categories.
In particular, infant milk formula is seeing signs of recovery, with Danone gaining market share through impactful innovations
Looking ahead, Danone plans to enhance its local production capacity in Japan, responding to strong demand there.
Esser emphasized the company’s commitment to delivering quality results sustainably, which is critical in maintaining momentum in the competitive dairy market
Danone’s results illustrate a balanced approach to navigating market challenges while continuing to focus on innovation and investment in core areas, reinforcing its position as a leader in the dairy industry.
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