Zurich — Danone’s long-suffering yoghurt business is finally showing signs of a turnaround. The Paris-based company’s revenue climbed 4.9% on a like-for-like basis in the first three months, the fastest first-quarter growth in five years and above analyst expectations. The gains were bolstered by an improvement in Danone’s dairy arm, which has been a drag on growth as infant-formula sales raced ahead. The shares rose as much as 3.8%. The company’s essential dairy and plant-based unit outside North America returned to growth as a revamp of its Activia line showed its first results. In Europe, the business is still in decline, though it’s getting better, chief financial officer Cecile Cabanis said. "We’re seeing consistent sequential progress in Europe. This year we confirm the stabilisation of this part of the business and region." In China, infant-formula sales surged more than 50%. Demand has been ramping up amid higher birth rates and a growing middle-class looking for foreign-mad...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.