Danone North America reports 5.8% sales growth in high-protein yogurt

USA – Danone North America has reported robust growth in its high-protein yogurt segment, contributing significantly to a like-for-like sales increase of 5.8% in the third quarter of the fiscal year. 

This growth comes despite a nearly 8% drop in reported sales, with total sales amounting to US$1.74 billion, down from US$1.9 billion during the same quarter last year. Volume mix/growth stood at 4.9%.

Juergen Esser, Danone’s Chief Financial Officer, described the results in North America as a “stellar performance.” 

He noted that the company’s coffee creations platform is thriving, with a strong portfolio of products that allow consumers to replicate coffee shop experiences at home. 

The high-protein yogurt category is particularly noteworthy, with products in this segment posting impressive double-digit growth. 

Other yogurt offerings, including the well-known Activia brand, have also shown accelerated momentum, enhancing the overall performance of Danone’s yogurt business.

On a broader scale, Danone’s total company sales reached US$7.29 billion, reflecting a slight decline of 1.2% from US$7.4 billion. This decline was attributed to a 3.1% negative impact from the company’s scope and a 3.2% adverse effect from foreign exchange fluctuations. 

However, the company reported a like-for-like sales increase of 4.2% and volume/mix growth of 3.6%. 

Esser noted that the negative scope effect is reducing, primarily due to the disposal of the Horizon Organic business earlier this year.

In the essential dairy and plant-based (EDP) segment, sales dropped 5.5% to €3.28 billion, yet like-for-like sales growth was 4.1%, with volume/mix growth at 3.8%. 

Esser highlighted the strong growth of the Oikos and Activia brands in Japan, which will soon be supported by increased production capacity at a local factory.

Danone’s Waters segment experienced a minor sales decline of 0.6%, totaling €1.35 billion. Despite this, like-for-like sales growth in this category was 3.2%. 

The Mizone brand, in particular, has performed well, aided by effective repositioning strategies and new electrolyte innovations.

Sales in the Specialized Nutrition segment saw an increase of nearly 6% to €2.19 billion, driven by a like-for-like sales growth of 5.2% and a volume/mix growth of 4.1%. 

For the first nine months of the fiscal year, Danone’s overall sales totaled €20.58 billion, down 2.6% from €21.12 billion during the same period last year. 

The company has maintained its fiscal 2024 guidance, anticipating like-for-like sales growth between 3% and 5%.

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