Key Takeaways:
Danone SA reported first-quarter like-for-like sales growth of 2.7 percent, narrowly beating analyst expectations and showing momentum is returning in its U.S. business.
The French food company, which makes Activia yogurt and Evian water, said the result was ahead of a company-compiled consensus that forecast 2.6 percent growth. On a reported basis, sales for the quarter fell to 6.67 billion euros ($7.83 billion) from 6.84 billion euros a year earlier.
The growth was composed of a 1.5 percent increase in volume and a 1.2 percent contribution from price. The performance was supported by a strong showing in the Americas, where like-for-like sales grew 3.4 percent, helped by its Stok coffee brand.
Danone reaffirmed its full-year guidance for 2026, continuing to expect like-for-like sales growth of between 3 percent and 5 percent. The solid first-quarter result keeps the company on track to meet its annual target.
The result suggests Danone's strategy is gaining traction, particularly in North America. Investors will watch the company's second-quarter results to see if the volume growth can be sustained and if momentum continues to build.
This article is for informational purposes only and does not constitute investment advice.
