French yoghurt maker Danone posted a 7.7% hike in second quarter like-for-like sales, beating analysts’ forecasts of 5.6% growth, reflecting price increases and strong demand for baby food and bottled water, according to Reuters.
Danone is the largest maker of yoghurts worldwide and has two massive plants in Macroom, Co Cork and Wexford in Ireland. It has subsequently raised its 2022 revenue growth outlook to 5% to 6% compared with the previous forecast of 3% to 5%.
The consumer goods giant, whose brands include Evian and Badoit water and Activia yoghurt, said its first-half recurring operating margin declined by one percent to 12.1% of sales in the first half of 2021, due to higher input cost inflation. However, they expect their full-year recurring operating margin to be 13.7% – 1.7% higher than in 2021.
The company’s new chief Antoine de Saint-Affrique is pursuing a revival plan amid mounting input costs and uncertainties caused by Russia’s invasion of Ukraine, which has forced Danone to suspend investments in Russia.
Danone, which also makes infant milk formula under the Aptamil and Cow & Gate brands, recently stepped up its shipments of the product from Europe — mostly from the UK and the Netherlands — to the United States in response to the US shortage.