Earnings report
Sales of dairy products at Nestle, Danone increase in first 9 months
Canada delivered solid growth with chocolate and ice cream for Nestle. Danone’s U.S. market share is 36%.
Danone Unimilk factory in Chekhov, Russia. Photo copyright by Thomas Haley and courtesy of Danone.
Nestle this week reported sales of CHF 65.5 billion (about $65.8 billion) for the first nine months of its fiscal year. That represents 3.3% organic growth and 2.5% real internal growth, it stated. Organic growth in milk products and ice cream increased 0.9%.
All geographic sectors grew.
- 4.8% in the Americas (AMS)
- 2.1% in Europe, Middle East and North Africa (EMENA)
- 2.5% in Asia, Oceania and sub-Saharan Africa (AOA)
In early October Nestle said it completed the transaction with R&R to create Froneri, a new joint venture in ice cream, frozen food and chilled dairy. It combines activities in Europe, the Middle East (excluding Israel), Argentina, Australia, Brazil, the Philippines and South Africa.
In the Americas, sales were CHF 18.8 billion. Organic growth was 4.5% and real internal growth was 1.6%. In North America, growth was driven by Coffee-mate, pet care, Lean Cuisine and Stouffer's. Lean Cuisine and Stouffer's as well as Nestlé USA overall continued to gain market share. Canada delivered solid growth with chocolate and ice cream the highlights.
Danone reports ‘solid growth’ in North America, CIS
At Danone, like-for-like sales grew 3.2%in the first nine months to 16.58 billion euros ($18 billion). Third-quarter sales rose 2.1% to 5.5 billion euros.
The Fresh Dairy Products division reported sales up 2.2% on a like-for-like basis, including a -2.3% decline in volume still driven by the CIS and the Latam region, and a 4.5% rise in value.
In Europe, Danone continued to progress in its transformation. After the relaunch of its Danonino and Actimel brands in the second quarter, the company has continued its major renovation plan with a new identity, positioning and packaging for the Activia brand in mid-September. It called this “a key step to reach the objective of a stabilization of sales.”
In the CIS & North America region, Danone said it generated “solid” growth. In the United States, despite a more competitive environment, total market share continued to rise, reaching a record high of 35.8%. In Russia, Danone offset a decline in volume by enhancing its brand portfolio with an improved product mix.
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