The Strategist

Danone lowers sales outlook for 2019

10/21/2019 - 09:42

Sales of French company Danone in physical terms fell by 1.6% year on year in the third quarter of 2019, the company said. In money, on the contrary, they grew by 3.7% to €6.4 billion.

The company explains the decline in volumes by a decrease in demand for drinking water in Europe, as well as for dairy and vegetable products in the CIS countries. Danone also admitted difficulties with sales in North America. In other regions, sales are growing.

“Danone’s third quarter performance was worse than we would like, but the company cannot control the weather,” said Cecile Cabani, chief financial officer of the company, quoted by Reuters. In Europe, the weather in August was much cooler than a year ago, which affected the sales of water. Cabani expects that the situation will change already in the next quarter, including due to a significant increase in sales of baby food in China. The situation with drinking water consumption began to improve, she said.