Danone has reported a "good start to the year" with net sales increasing by 7.1% in the first quarter on a like-for-like basis.
Against difficult market conditions, the global food and drink company recorded net sales of €6,236 million in the first three months of 2022.
The French firm employs hundreds of people in bases located in Wexford, Dublin and Cork.
Danone results
Danone noted that the operating environment remains "highly volatile", with sustained supply disruptions and broad-based inflation around mid-teens levels in 2022.
Despite this, sales grew by 5.7% in Europe and by 5.5% in North America; this was driven by all categories of the business.
Specialised nutrition was credited with 15.3% growth in China and north Asia, albeit from a low comparison base. There was growth of 7% recorded across the rest of the world, driven, in part, by sales of water.
The world's largest yogurt producer has reiterated its financial guidance for the year, supported by "pricing actions, mix management and productivity efforts".
It is expecting annual like-for-like sales growth of between 3 and 5% and operating profit margin to remain above 12%.
The company, which expects 2022 to be a "foundational year", recently presented its new strategic priorities and 'Renew Danone' plan.
Russia
Danone also used its financial statement to reiterate its position on the Russian invasion of Ukraine.
"Danone condemns the ongoing war in Ukraine with no ambiguity," it said.
The company has decided to significantly adapt its operations in Russia by the following actions:
- Refocusing its portfolio on essential dairy products, infant and medical nutrition, and ceasing all imports of evian and Alpro products;
- Stopping all new investments, including advertising, brand activations and consumer promotions.
Danone outlined that it does not take cash, dividends or profits from Russia, and will donate any profits made in the country to humanitarian relief organisations.
