In the Q3 2023, Danone, a global leader in food and beverages, reported impressive growth, achieving sales of €6.9 billion. This represents a substantial 6.2% increase on a like-for-like basis, driven by a sequential improvement in product volume and mix, despite a slight 0.3% dip.
The company’s Essential Dairy and Plant-Based (EDP) category played a pivotal role in this success, reflecting Danone’s strategic focus on this area.
Key Highlights from Danone’s Q3 2023 Report:
Sales Growth Across Regions:
- Europe: Sales in Europe grew by 5.1% on a like-for-like basis. This was fueled by a 9.2% increase in pricing, partially offset by a 4.1% decrease in product volume and mix.
- North America: The North American market saw a 3.9% sales increase on a like-for-like basis, with a 4.0% rise in pricing and a stable product volume and mix, which saw only a slight 0.2% decrease.
- China, North Asia & Oceania: This region was a standout performer, with an 8.4% growth in sales on a like-for-like basis, driven by a 7.3% improvement in product volume and mix and a 1.2% increase in pricing.
- Latin America: Sales surged by 8.2% on a like-for-like basis in Latin America, where a significant 10.0% increase in pricing more than compensated for a 1.8% dip in product volume and mix.
- Rest of the World: This region saw strong growth, with sales rising by 9.7% on a like-for-like basis, thanks to a 7.7% increase in pricing and a 1.9% rise in product volume and mix.
Sales Growth by Category:
- Essential Dairy and Plant-Based (EDP): EDP, a core focus for Danone, posted a robust 6.3% sales increase on a like-for-like basis. Despite a minor 0.8% drop in product volume and mix, pricing was a key driver of growth.
- Specialized Nutrition: This category saw a 5.7% rise in sales on a like-for-like basis, supported by a 0.3% improvement in product volume and mix and a matching 5.7% increase in pricing.
- Waters: The Waters category achieved a 7.0% sales growth on a like-for-like basis, where a slight 0.2% decline in product volume and mix was offset by a 7.0% increase in pricing.
2023 Outlook:
Following its strong Q3 performance, Danone has raised its full-year guidance. The company now expects like-for-like sales growth to range between 6% and 7%, up from the previous estimate of 4% to 6%. Additionally, Danone reaffirms its commitment to a moderate improvement in recurring operating margin.
The positive sales figures underscore Danone’s commitment to delivering quality products across diverse regions and categories. Despite the challenging business environment, Danone remains optimistic about its future. The company plans to continue its consistent business model while investing in brand strength and innovation.
In summary, Danone’s Q3 2023 results highlight the company’s strategic focus on growth, particularly in key regions and product categories. With a strong commitment to sustainability and innovation, Danone is poised for continued success in the global food and beverage industry.