Danone sales rise as consumers stock up

File: Dairy products and baby formula led the increases, with sales rising by 4.6 and 7.9 percent on a like-for-like basis.

File: Dairy products and baby formula led the increases, with sales rising by 4.6 and 7.9 percent on a like-for-like basis.

AFP

PARIS - French food giant Danone said its first-quarter sales rose as consumers subject to coronavirus lockdowns stocked up on essentials.

The firm, known for its Danone and Activia yoghurts, warned in February of a slowdown in sales as China, its second-largest market, was under lockdown to slow the spread of coronavirus.

But in the end, sales rose for the January through March period, by 1.7 percent to 6.24 billion euros.

READ: Danone sees 100mn euro hit from coronavirus in Q1

Excluding currency effects, sales were up by 3.7 percent.

Chief executive Emmanuel Faber said the figures "...were stronger than we had anticipated, with a China downside offset by pantry loading upside in Europe and North America in March..."

Dairy products and baby formula led the increases, with sales rising by 4.6 and 7.9 percent on a like-for-like basis.

READ: Exchange rates sour Danone's sales, but not target

Meanwhile, sales of its waters such as Evian fell 6.8 percent as the firm said as much as 40 percent are consumed away from home.

The firm reported it was unable to predict how supply and demand would behave as countries adjust their lockdown strategies and decided to withdraw financial guidance for investors for this year.

Source
AFP

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