Danone sales slid 5.4% in 9M 2020

In the period January-September 2020, Danone sales fell by 5.4% YoY to EUR 18 bln, the company's report data show.

Sales of essential dairy and plant-based products (EDP) fell by 1.2% in 9M 2020, from EUR 9.82 bln to EUR 9.7 bln, and specialized nutrition by 3%, from EUR 5.61 bln to EUR 5.44 bln.

The company's export geography in January-September 2020:

• Europe, USA, Canada: ▼1.4% to EUR 10.16 bln
• other regions: ▼10.1% to EUR 7.85 bln

In the third quarter of 2020, consolidated sales stood at EUR 5.8 bn, down -9.3% on a reported basis, primarily driven by a change in currencies against the euro which had an effect of -7.1% on the sales of the quarter (mostly from the US dollar, the ruble, and currencies in Latin America).

"Our Q3 results reflect how much the COVID-world and its cohort of sanitary measures, border closures, uncertainty in consumer sentiment and some structural changes affect our business," the company says.

Danone’s priorities for the next quarter will be to keep the market share momentum and continue to sequentially improve sales growth on a like-for-like basis albeit at a slower pace. Recurring operating margin is expected to remain impacted in the second half by COVID-19-related extra-costs and negative mix, but efficiency, cost control and tight cash management actions are in place to target for the full-year 14% recurring operating margin and the delivery of EUR 1.8 bln free cash flow.

Previously reported that the dairy segment of Astarta-Kyiv demonstrated a reduction in 9M 2020: sales of milk amounted to about 68.18 thou. t, 6% lower from 9M 2019.