- Danone’s like-for-like sales for the first quarter have exceeded estimates with a growth of 4.1%, beating the projection of 3.52%.
- The Essential Dairy & Plant-based sector reported like-for-like sales growth of 3%, surpassing the forecast of 2.93%.
- Specialized Nutrition also witnessed growth in like-for-like sales by 3.8%, exceeding the 3.43% estimate.
- Waters had the highest like-for-like sales increase of 8.1%, beating the 5.52% estimate.
- The volume/mix index grew by 1.2%, surpassing the estimate of 0.89%.
- Price increases contributed to 2.9% of the sales, beating the projected 2.66%.
- The impact of Forex on sales was lower than expected, at -3.2%, compared to the anticipated -3.79%.
- The overall sales for the quarter were EU6.79 billion, representing a 2.5% year-on-year reduction, but still surpassing the estimate of EU6.6 billion.
- Despite a 7.8% year-on-year drop, Essential Dairy & Plant-based sales reached EU3.47 billion, beating the estimate of EU3.43 billion.
- Specialized Nutrition sales hit EU2.18 billion, recording a 1.9% year-on-year growth and beating the estimated EU2.08 billion.
- Waters sales achieved EU1.13 billion, marking a 7.7% increase year-on-year, and exceeding the estimated EU1.06 billion.
- Danone maintains its forecast for like-for-like sales growth between 3% to 5%, beating the 3.82% estimate.
- The company still anticipates a “moderate improvement” in its recurring operating margin for the full-year 2024.
A look at Danone SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Danone SA seems to have a positive long-term outlook. The company scored well in areas such as Dividend and Momentum, indicating strength in these aspects. With a solid score in Dividend, investors may find Danone SA attractive for potential income generation. Additionally, the Momentum score suggests that the company has been performing well recently, which could bode well for its future growth.
Although the Value, Growth, and Resilience scores for Danone SA are moderate, the company’s overall outlook remains stable. As a food processing company known for producing a diverse range of products including dairy, beverages, baby food, and clinical nutrition items, Danone SA‘s resilience in the market is evident. While there may be room for improvement in certain areas, the company’s strong performance in Dividend and Momentum could drive positive results in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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