The French food group Danone started the year with a significant increase in sales, mainly due to price increases. In the first quarter, revenue rose by 10.2 percent year-on-year to a good EUR 6.2 billion, as the company announced in Paris. Adjusted for currency fluctuations and the purchase and sale of parts of the company, the increase was 7.1 percent and thus higher than the average expected by analysts.
Increased prices alone drove revenue up by 4.9 percent. A year earlier, sales had fallen as a result of the pandemic. This time, sales of baby food in China and water in general increased in particular following having declined significantly in the previous year. For the current year, the management continues to anticipate an increase in sales of 3 to 5 percent on a comparable basis. More than 12 percent of the proceeds should remain as an operating profit.
In the face of the Russian attack on Ukraine, Danone has halted all new investments and promotions in Russia. In addition, the group only wants to sell basic dairy products, baby food and special medical foods in the country. Profits from the Russia business should go to humanitarian organizations.
