Speculation CEO Antoine de Saint-Affrique has denied that Danone would contemplate selling one or more of its divisions.
De Saint-Affrique stated at the company’s AGM in Paris yesterday (April 26) and verified to Just Food that “the categories in which we operate are rising because they are in line with the expectations of our consumers.”
However, the Danone CEO refuted this last month; he stated that “nothing was wrong” with its businesses – dairy and plant-based goods, newborn formula and specialized nutrition. Meanwhile, during the AGM yesterday, Franck Riboud, the son of Danone founder Antoine Riboud and a former company chairman and CEO, officially stepped down as a board member after 30 years. He will continue to serve as honorary chairman.
Danone’s net sales increased by 7.1 per cent to EUR6.23 billion (US$6.74 billion) in the first quarter of 2022; this exceeded analyst projections of a 5.5 per cent increase. Growth was broad-based across geographies and categories. Danone’s dairy and plant-based division increased like-for-like sales by 3.6 per cent. LFL sales increased 9.5 per cent in the company’s specialized nutrition branch, which houses infant formula. Danone’s bottled water unit recorded a nearly-16 per cent increase in like-for-like sales as it approached the COVID lockdowns in early 2021.
Stock futures sink as Amazon
Stock futures in the United States fell Friday morning, ending a wild month, as a new wave of mixed quarterly results from some large technology companies weighed on index futures. The S&P 500 closed out Thursday’s session substantially higher, up 2.5 per cent, while the Nasdaq Composite surged 3.1 per cent, its highest day since March 16. Despite these significant gains, the S&P 500 was on course to register its third monthly drop in four months. Contracts on the S&P 500, Dow, and Nasdaq all fell. Amazon shares fell after the tech behemoth unexpectedly reported a quarterly loss and issued a weaker-than-expected current-quarter forecast.
Volatility has returned in recent weeks due to concerns that the Federal Reserve’s tougher monetary policies could derail the economy. These concerns were exacerbated by persisting concerns about chronic inflation, geopolitical unrest, and a COVID outbreak in China. The S&P 500 was on track for a 5% decline in April based on Thursday’s closing level.
The United States economy contracted for the first time since the second quarter of 2020 at the start of this year. The first-quarter GDP loss in the United States was 1.4 per cent annualized; meantime net trade, inventories, and government investment all weighed on overall domestic output. Consumer spending was less robust than predicted.