Dive Brief:
- Danone reported a 5.2% drop in sales revenue in the first quarter, as currency exchange rates cut into the top line. Adjusting for currency issues, sales rose 2.2%.
- The maker of global brands such as Evian water and Dannon yogurt reiterated its full-year projections, saying growth and profitability were both expected to rise in the present quarter.
- The good news for Danone was that sales of infant formula fell just 7.7% in the first quarter, better than had been anticipated, as the company recovers from the effects of a massive recall in Asia.
Dive Insight:
Six months ago, Danone was in desperate trouble -- reeling from recalls, threatening to sue suppliers, and staggering under the weight of a bribery scandal. The company's quick bounce back is surprising, since the world's largest yogurt maker had to combat higher milk prices in Europe, particularly in Russia, and business troubles caused by the political unrest in Ukraine.