French food manufacturer Danone has done better than expected in its first quarter, thanks to increased baby food sales, which has grown for the first time in a year.
Comeback after issues
Danone's baby food struggled a lot over the past few quarters: first, it had to deal with bribery claims in China and later it had to recall part of its products. The division also had to deal with lower turnover over the past few quarters, but in the first quarter of Danone's fiscal year the baby food division finally managed a 19 % turnover increase.
The other divisions struggled: fresh dairy sales volumes dropped more than 7 %, even though that was off-set by price increases. Total turnover grew to 5.4 billion euro (+ 6.9 %), while analysts had only expected 5.8 %. Danone forecasts a 4.5 to 5.5 % growth for the full year.