Danone Shares Soar After 1Q Beat
April 20 2022 - 3:26AM
Dow Jones News
By Giulia Petroni
Danone SA's shares soar Wednesday at market opening following a
broadbased sales beat in the first quarter and reiteration of
guidance for the full year despite inflationary and supply-chain
pressures.
At 0742 GMT, shares trade 7.1% higher at EUR56.39.
The French food company's start to the year was marked by
quarterly sales organic growth of 7.1%, mainly driven by price and
volume/mix, which were up 4.9% and 2.2% respectively.
"1Q sales have beaten meaningfully, led by the specialized
nutrition division, the health of which we see as critical to the
profit and margin algorithm," analysts at Jefferies say in a
research note.
Danone also backed its 2022 outlook despite expected mid-teens
inflation in the year and still assuming the reinvestment of 100%
of the cost savings of its "local first" plan. This means the
company will be "funding its revamp while peers may have to cut
back on A&P [advertising & promotional spend] to protect
margin outlooks," Citi analysts say in a note.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
April 20, 2022 04:11 ET (08:11 GMT)
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