Danone 3Q Reported Sales Fell on Currency Effects; Confirms Guidance
17 Ottobre 2018 - 08:02AM
Dow Jones News
By Anthony Shevlin
Danone SA (BN.FR) said Wednesday that reported sales in the
third quarter fell as a result of negative currency effects, but
the company confirmed its full-year guidance and said it's prepared
for currency headwinds.
The French company said sales in the three months ending Sept.
30 were 6.19 billion euros ($7.17 billion), compared with EUR6.47
billion the year previous. Although sales fell 4.4% on a reported
basis, Danone said like-for-like sales grew 1.4%.
Like-for-like sales in the company's waters business rose 6.4%
to EUR1.27 billion but its specialized nutrition business posted a
decline in China, after 12 months of "exceptional growth."
Analysts at Bernstein had expected the slower birth rate in
China to hit the business.
The ongoing consumer boycott in Morocco also affected Danone's
essential dairy and plant-based international business, which
posted flat sales on a like-for-like basis.
Danone's sales were hit by the devaluation of currencies in
emerging markets, driven by the appreciation of the euro against
the Turkish lira, Argentinian peso and Brazilian real.
Danone Chief Executive Emmanuel Faber said: "We have the
foundations in place to navigate current emerging-market volatility
and currency headwinds, which will enable us to continue to deliver
sustainable profitable growth."
Danone confirmed its full-year guidance and targets double-digit
recurring EPS growth at constant exchange rates, excluding the sale
of Yakult. The company said its full-year guidance doesn't take
into account the application of hyperinflation accounting in
Argentina from July 1.
Danone said it expects market volatility to continue and sees
inflationary conditions in raw materials such as sugar and
fruits.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com;
@anthony_shevlin
(END) Dow Jones Newswires
October 17, 2018 01:47 ET (05:47 GMT)
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