Vladimír Urbánek (Kurzy.cz)
World markets  |  April 16, 2013 14:15:08

Sales leader Danone yoghurt překanaly market in 1Q13 estimates

World leader in the production of yogurt and a leading global food company Danone, for 1Q of this year showed sales growth of 5.6%, beating market forecasts, on average, only set to grow by 4%.

Revenues from the sale of the infant formula increased by 17%. The high growth of this division is mainly due to the high demand for foreign-proven products in China and other Asian countries in recent months by repeated scandals facing the defectiveness of some local products of this segment. Some products (milk powder) of imports in Asian countries even put limits on the maximum possible daily or monthly subscription. The company expects demand from the region will be intensified. Restrictions introduced, among others, the United Kingdom.

Sales in emerging markets and in the U.S. in Q1 grew by more than 10% of sales in Europe declined by 5.1%.
Sales of fresh products with a short life period grew by 0.7%.

The management reiterated the outlook for this year's estimated growth in total revenues by about 5%, operating margin should decline by 0.3 to 0.5 percentage points.

The total number of offered products increased by 3%, which exceeded market expectations set at 2.6%.

Currency effects reduced total sales by 2.4% due to the development of the Argentine peso, the Brazilian real and Indonesian Rupiah.

Danone shares responded to the report of growth of about 4% and is now moving up from January 2008.
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