Dive Brief:
- Danone SA reported positive sales results for Q1 2015, which rose 8.1% over the first three months of the year to $5.82 billion. Without currency shifts, acquisitions and disposals, sales saw a 4.8% boost.
- Growth was led by baby food, waters, and medical nutrition, which offset the souring of the fresh dairy segment, the company's largest business.
- Thus far, sales targets for 2015 are still in line with initial predictions, and the company reconfirmed the full year's targets. However, Danone in February did cite "rising raw material costs and fragile consumer trends," which could potentially affect future sales and profit growth for the year, The Wall Street Journal reported.
Dive Insight:
Danone has struggled with a few different factors lately, which makes these sales numbers all the more positive for the company. Those factors include, "a series of issues starting with the economic crisis that hit dairy sales in some of its largest European markets to a food safety scare in Asia that hit demand for baby food in China," according to The Wall Street Journal. Part of a growth plan for the company involved changing up its top management.
The company also recently entered into a partnership with Starbucks to create special products using Danone's popular Dannon Greek yogurt brand.