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


(END) Dow Jones Newswires

April 20, 2022 04:11 ET (08:11 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
Grafico Azioni Danone (EU:BN)
Da Ago 2022 a Set 2022 Clicca qui per i Grafici di Danone
Grafico Azioni Danone (EU:BN)
Da Set 2021 a Set 2022 Clicca qui per i Grafici di Danone