In a recent press report, Danone SA (ADR)(OTCMKTS:DANOY) announced sales figures for the recently concluded 3Q2015. Although it performed well in all the areas, sales grew 4.2% to touch a whopping €5,641 million figure.
If impacts causing due to change in the basis for comparison are excluded, company’s sales grew by 4.6%. Such impacts make room for the scope of consolidation and exchange rates. This organic growth reflects 3.8% rise in value and 0.8% rise in the volume. As per the reports, the negative 0.2% exchange rate effect was caused due to volatility in the currency market, including Brazilian real and Russian ruble.
Fresh Dairy Products
The sales of fresh dairy product division increased 0.6% in the third quarter as a result of +3.9% price/mix effect and 3.3% reduction in volumes. Although market conditions from one country to another changed and affected the numbers, Danone managed to report a reasonable growth in the dairy product division.
Europe, despite many ups and downs, proved to be a good market for the company as Actimel brand got excellent results across Europe while Danette and Activia got a good response in Spain. Same is the case with Russian business. The business environment in Russia isn’t good, but still Danone can post a reasonable profit, which is something beyond expectations.
The best market for the company is undoubtedly the United States as it’s growing higher and higher with every quarter. Danone can fulfill its agenda to reignite growth in US market, which is nothing less than a major accomplishment.
Other areas in which Danone managed to perform well and increase sales performance include Water, Early Life Nutrition, Medical Nutrition, etc. The senior management of the company is delighted to post such great sales numbers amid difficult market conditions, hoping that things will improve with time.
Danone will keep its shareholders and investors abreast via timely announcements about different steps taken to achieve higher targets and standards.
Danone SA (ADR)(OTCMKTS:DANOY) has been in a strong uptrend ever since hitting a 52 week low of $11.88 in early September. The stock has been able to move above its important daily moving averages which are considered to be a bullish sign. The momentum indicators for the stock currently trade in the bullish zone and are showing no signs of a reversal which is indicative of the strong buying interest present at current levels. Traders on the street believe the stock could head to levels of $14 in the near term and would find support near the $12.74 level.