🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Danone sees China as key growth driver, CFO says

Published 18/04/2024, 12:52
© Reuters. FILE PHOTO: French food group Danone logo is seen at the company headquarters in Paris, France, February 5, 2024. REUTERS/Sarah Meyssonnier/File Photo

By Agata Rybska

(Reuters) - Danone (LON:0KFX) said on Thursday that China will remain a key growth driver for the world's largest yoghurt maker, as medical nutrition and beverages categories remain robust.

In 2022, demand for Danone's Chinese vitamin drink brand Mizone was hit by the country's no-COVID policy, but the company turned this around in 2023, making China its "number one driver", Chief Financial Officer Juergen Esser said.

"We're going to continue growing fast in China," Esser told Reuters in an interview.

China's aging population generates high interest in Danone's medical nutrition business, which drives growth along with the beverages category, Esser said.

© Reuters. FILE PHOTO: French food group Danone logo is seen at the company headquarters in Paris, France, February 5, 2024. REUTERS/Sarah Meyssonnier/File Photo

Meanwhile, the infant nutrition business continues to be under pressure due to declining birth rates, he added.

Danone beat expectations for first quarter volume/mix on Thursday, as a 6.9% increase in China drove a 1.2% rise for the group, with the Waters segment recording double-digit percentage sales growth on a like-for-like basis.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.