Dairy and plant-based leader Danone reported net sales of €6,236 million in the first quarter, up 7.1% on a like-for-like (LFL) basis, with price up 4.9% and volume/mix up 2.2%. Net sales were up 10.2% on a reported basis.
Broad-based like-for-like sales growth
• 5.7% increase in Europe and 5.5% increase in North America driven by all categories.
• 15.3% increase in China and North Asia led by Specialized Nutrition benefiting from a low base of comparison.
The operating environment remains highly volatile, with sustained supply disruptions and broad-based inflation around mid-teens levels in 2022.
2022 guidance reiterated, supported by pricing actions, mix management and productivity efforts: price-led like-for-like sales growth between 3% and 5% and a recurring operating margin above 12%.
Juergen Esser, CFO, said in the company announcement: “Sales were up 7.1% on a like-for-like basis in the first quarter, kicking-off a good start to 2022. Growth was broad-based across geographies and categories, and benefited from a positive contribution from both price and mix. Volumes held well especially in North America and Europe as we continued to navigate a highly volatile and inflationary environment.
“We are actively pursuing the agenda set out at our recent CME. In line with our Renew Danone approach, we are putting greater focus on the quality of our execution, supported by pricing and mix management as well as sustained productivity efforts. As announced, we have now started our reinvestment program with savings generated by Local First.
“Our teams are mobilized to make 2022 the foundational year it ought to be for Danone as we move towards sustainable value creation for all. We reiterate our guidance for the year, with price-led like-for-like sales growth in the 3 to 5% range and recurring operating margin above 12%.”
2022 first-quarter sales
In the first quarter of 2022, consolidated sales stood at €6.2 billion, up 7.1% on a like-for-like basis, led by 4.9% in price and 2.2% in volume/mix. On a reported basis, sales increased by 10.2%, benefiting from a positive forex impact of 2.2%, notably reflecting the appreciation of the British pound, the U.S. dollar and other Asian and Latin American currencies against the euro. Reported sales also benefited from a positive organic contribution of hyperinflation geographies to growth (+1.0%), as well as a slightly negative scope effect of -0.2%, resulting from the combined effects of the integration of Follow Your Heart and the disposal of Vega.
North America
North America sales increased 5.5% on a like-for-like basis, benefiting from a positive contribution of 1.3% from volume/mix and 4.2% from price. Growth was driven by all categories, despite sustained supply challenges, with a continued strong momentum in Yogurt led by Oikos, Two Good, Activia and Danimals, and a particularly strong quarter in coffee creamers, led by International Delight. Plant-based grew mid-single digits, with beverages showing good momentum in growth and competitiveness while adjacencies delivered continued strong growth.
