Danone is in radiant health, thanks in particular to the worldwide sale of infant milk.
The French agri-food group Danone showed confidence for 2022 by announcing an increase in its turnover growth target, driven by rising prices, according to a press release published on Wednesday. Danone now expects a like-for-like sales increase of between +5 and +6%, versus +3 to +5% previously, thanks to “the price effect“, according to the group, “and confirms expecting a current operating margin above 12%“.
In the first half, sales amounted to 13.3 billion euros, up 12.6%. This amount is slightly higher than the Bloomberg analyst consensus (13.1 billion). Its net profit, however, fell by 31%, to 700 million euros, weighed down by impairments linked to the sale of the remaining investments in the partnerships with Mengniu, the Chinese dairy giant.
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At the same time, all of the group’s divisions posted growth in their activity. The Waters category grew by 16.6% compared to the first half of 2021, the Specialized nutrition category increased by 14.7% and dairy and plant-based products (EDP) grew by 10.2%.
The group, which communicates its results by major geographical area, points out that its sales are increasing wherever it is present. In North America, sales increased by 16% in particular, driven by Waters. The shortage of infant formula in the United States has also enabled the group to increaseits exports of Neocate pediatric solutions and Aptamil infant formula“, emphasizes the group. In China, North Asia and Oceania, sales increased by 16.9%, driven by infant milk sales in China. In the game “rest of the world“, Danone underlines that “operational conditions remain extremely tense in Russia and Ukraine“.
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