Danone 1Q Sales Were Stronger Than Expected -- Earnings Review
21 Avril 2020 - 10:45AM
Dow Jones News
By Giulia Petroni
Danone SA posted first-quarter sales on Tuesday. Here's what you
need to know:
SALES: The French food company recorded sales of 6.24 billion
euros ($6.78 billion) compared with EUR6.14 billion in the same
period the previous year. Sales rose 1.7% on a reported basis and
3.7% like-for-like. A FactSet-compiled consensus had forecast sales
at EUR6.17 billion in the quarter. Results also came ahead of the
company's forecast--in February, Danone said it was expecting a
sales loss of around EUR100 million in the quarter due to Covid-19,
implying a flat performance organically.
WHAT WE WATCHED:
--GROWTH: Sales growth was stronger than anticipated as the
China downside was offset by pantry loading benefits in Europe and
North America in March and categories performance offsetting each
other, according to Danone.
--WATERS: In the first-quarter, net sales were down 6.8% on a
like-for-like basis. In China, sales declined by around 40% as
expected, due to the previously anticipated impact of coronavirus
on the on-the-go market demand and supply chain.
--GUIDANCE: Danone withdrew its 2020 guidance on recurring
earnings per share growth, like-for-like sales growth and recurring
operating margin due to uncertainty around the severity and
duration of the virus crisis across its markets. The company said
it expects the second quarter of the year to be significantly
affected by global lockdowns.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
April 21, 2020 04:30 ET (08:30 GMT)
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