FRANCE: Healthy Q3 for Groupe Danone as waters shine, again

• Danone waters division posts nine-month sales lift of 10.5%
• Sales volumes also rise by 5.3%
• Q3 sales up by 12.3% for waters
• Group Q3 sales follow trend, increasing by 5.6%

The bottled water division of Groupe Danone has continued its strong performance in 2012, with a healthy rise in sales in the third quarter.

The French conglomerate, whose Volvic and Evian brands were the star performers of its H1 numbers, said earlier today (17 October) that sales from its water division in the first nine months of this year were up by 10.5% year-on-year, totalling EUR2.82bn (US$3.70). Volumes for the period also held up well, rising by 5.3%.

For the three months to the end of September, sales from the unit increased by 12.3% to EUR962m, with volumes up by 5.4%.

"Strong growth in emerging markets continues to drive the division’s performance," the company said. "In Western Europe, sales benefited from a favourable basis of comparison with Q3 2011, which helped offset adverse weather conditions that prevailed in July 2012." 

Group-wide, Danone posted a 5.6% lift in sales for the year so far, to EUR15.73bn, and a 5% rise in Q3 to EUR5.26bn.

Looking to its full year, Danone said that it still expects 5.7% sales growth for 2012, with the "robust performance of operations in Asia, the Americas, Africa/Middle East and the CIS continuing to help offset pressure on Western Europe".

The target for trading operating margin, however, has been moved from 'stable' to 'down 50 basis points' as the company looks to stem the "swift deterioration in consumption in southern Europe".

By 1230 BST today, Danone's share price had slipped back by 3.9% to EUR46.85.

To read the company's official statement, click here.