Baby food drink for Danone

Corinne Gretler

Danone, the largest yogurt maker in the world, has seen a rise in profits as Chinese consumers have increased sales of infant formula and dairy products in North America.

at constant scope at 1.78 billion euros, just below the consensus of badysts, while revenue growth beats estimates.

Shares rose nearly 3% in Paris, valuing the company at 46.3 billion euros. The results are the latest example of Danone outperforming Nestlé rivals and Reckitt Benckiser in baby food, especially in China, where baby formula maker Aptamil grew 30 percent in the second quarter thanks to the strong performance of the company. expansion of e-commerce. Between Danone and Nestle, much of the baby food sold in China is made in Ireland.

The activity is expected to slow down in the rest of the year due to a difficult comparison basis. This comes from the fact that Danone's dairy business is showing signs of reversal.

A consumer boycott in Morocco, initiated on social networks to protest high prices, has reduced sales by about 40% in recent months

. the boycott, second-quarter sales rose 4.3%. The event also resulted in lower revenues in Danone's long-standing yogurt business outside of North America. Excluding the boycott, they climbed for the second consecutive quarter. The effect will continue in the second half, said badysts Cécile Cabanis, chief financial officer

In North America, the fresh produce sector remains very unfavorable, added Ms. Cabanis. Danone explores a sale of organic distributor Earthbound Farm. Mrs Cabanis said in April that the first priority was to return the unit

In Europe, yogurt activity was still slightly negative, even after the company launched a redesign of Activia yogurt about two years ago. "Overall, it has not stabilized yet, but it is progressing," she told reporters. Danone's bottled water sales growth of 4.5% in the first half of the year also exceeded Nestlé's 1% increase for this category of products.

Danone reiterated its earnings per share forecast up a double-digit percentage at constant exchange rates this year. Baby food growth will slow in the second half as comparisons become more difficult, while the specialty nutrition unit will grow in single-digit percentage growth this year, Cabanis said.

Bloomberg. Additional Reporter Irish Examiner