FRANCE: Groupe Danone deliver Q1 sales lift

Groupe Danone has posted a healthy lift in first quarter sales, driven in part by rising revenues from its waters division.

The France-base company, which owns the Evian and Volvic water brands, said today (14 April) that total group sales in the first three months of 2008 were up by 11.4% on the corresponding quarter a year, at EUR3.76bn (US$5.93bn).

Sales at the water division rose by 7%, following what a spokesperson for the company described as the "de-consolidation" of its Chinese joint venture with Hangzhou Wahaha from its financial performance. Revenue from the unit reached EUR695m, compared to EUR1.01bn in Q1 last year, when Chinese results were also factored in.

Volumes at the waters division were up by 6.8% year-on-year, with Latin America and Asia driving the rise. Growth in Europe was described as "more modest", due in part to fewer selling days than last year, as a result of an earlier Easter season, and by "softer market conditions" in France.

"The first quarter of 2008 has witnessed a very solid financial performance across all our divisions," said company chairman and CEO, Franck Riboud. "Based on the group's overall performance in the first three months of the year, we are confident to achieve our targets for 2008 both in terms of growth as well as profitability."

The group expects total sales for 2008 to rise by between 8% and 10% on 2007, with underlying earnings per share growth of at least 15%.