- Shares of Danone (OTCQX:DANOY) fall 4.4% in Paris trading after the company reported FQ3 sales grwoth of 1.4% to €6.19B ($7.1B).
- Analysts are attributing the share price drop to concerns over Danone's 20% decrease in infant milk formula sales in China during the quarter.
- Looking ahead, Danone reiterated its expectation for a double-digit profit growth this year.
- CEO update: "We have seen an encouraging return to growth in Essential Dairy and Plant-Based, alongside strong momentum in Waters. This demonstrates how Danone is balancing growth across its businesses. Our performance in EDP and Waters compensated for challenging conditions in China where Early Life Nutrition shows changes in market dynamics following a period of exceptional growth. We also have the foundations in place to navigate current emerging market volatility and currency headwinds, which will enable us to continue to deliver sustainable profitable growth. As a result, we have today reaffirmed our guidance for the full-year."
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Danone press release (.pdf)