Dairy helps Danone deliver strong first quarter

INTERNATIONAL – French food group Danone has reported strong sales growth for the first quarter of 2002, with dairy products showing the strongest growth.

Danone’s like for like sales in its fresh dairy products division were up 6.7% on the same period last year. Overall like for like sales growth for the group was 4.1%, with the beverage division up 2.7% and Danone’s biscuit and cereal business up 0.9%.

In a statement, the company said that following the sale of its Galbani subsidiary, scheduled for the end of this month, organic sales growth would reach a minimum of 5.2%.

In North America, the company saw disappointing performance from its water business, with sales down by 88%. However this was made up for through a 9% growth in its North American dairy business.