By Giulia Petroni

 

Danone SA said Wednesday that profit fell in the first half of 2022 while sales rose, and raised its organic sales growth guidance for the full year.

The French food company said net profit in the period was 737 million euros ($749.4 million), down from EUR1.07 billion the year earlier.

Sales increased to EUR13.33 billion from EUR11.84 billion the previous year. On an organic basis, sales were up 7.4%. In the second quarter, sales grew 7.7% to EUR7.07 billion, led by a price up of 6.8%.

Danone registered organic sales growth of 8.9% in North America, driven by coffee creamers, yogurts and plant-based, and growth of 5.1% in Europe led by specialized nutrition and waters. In China, North Asia and Oceania sales grew 3.3% organically mainly thanks to specialized nutrition, while the water brand Mizone was negatively affected by lockdowns and Covid-19-related restrictions.

In the full year, Danone said it now sees price-led organic sales growth of between 5% and 6%, from previous expectations of between 3% and 5%. It confirmed it expects the recurring operating margin to be above 12%.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

July 27, 2022 02:00 ET (06:00 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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