Danone Waters has recorded a rise in sales for the first quarter, boosted by strong volume growth in its emerging markets.
Sales for the quarter increased by 2.3%, on a like-for-like basis, based on “strong” volume growth of 8.5% offset by a negative value effect of -6.2%, Danone said today (15 April).
Volume growth continued to be driven by the emerging markets (55% of the divisional sales), which continued to deliver strong volume and sales growth, despite poor weather conditions in Mexico in January and February.
However, the environment continued to remain “very challenging” in Japan, the firm said, and to a lesser extent in Spain, thereby having a continued negative effect on value (mainly country mix) growth.
For the first three months of 2010, Danone Groupe reported consolidated sales increased by 8.3% to EUR3.98bn (US$5.40bn). Excluding the effects of changes in exchange rates, total sales increased by 7% on a like-for-like basis.
Danone said it will continue to face a “challenging” financial, economic and social environment in 2010, with “continued difficult consumption trends” in western economies, weak emerging currencies and inflation of raw materials.

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