Danone exceeded market expectations in the first quarter, reporting sales of €6,844m, up 4.3% on a like-for-like basis year-on-year.

The Activia and Evian owner performance was boosted by improvements in both volume/mix across all categories (+1.9%) and price (2.4%).

Danone saw strong demand for infant formula in China and medical nutrition products, but sales of coffee creamers were weak in the competitive US market.

"With a +4.3% like-for-like sales growth in Q1, we have delivered a strong start to the year, across all categories, demonstrating the strength of our execution and the relevance of our health-focused portfolio," said Antoine de Saint-Afrique, CEO of Danone.

"In the current uncertain environment, our science-based innovations, our consumer and patient-centric approach, and our increasingly diversified channel footprint further contribute to the resilience of our business.

"We are confident that 2025 will be another year where we deliver on our value creation model, aligned with our mid-term ambitions."

Danone, whose brands include Evian and Activia, recorded sales of €2,389m in Europe (+2% like-for-like), €1,633m in North America (+3.7%), €936m in China, North Asia & Oceania (+9.9%), €715m in Latin America (+9%), and €1,170m in the rest of the world (+3.3%).

Like-for-like sales in Danone's essential dairy and plant-based division increased 3.7% to €3,381m, and sales also rose in specialised nutrition (+5.3% to €2,306m) and waters (+4.1% to €1,156m).

Danone has confirmed its full-year guidance of 3-5% like-for-like sales growth with recurring operating income growing faster than sales.

The group completed a €192m share buyback programme in March, and successfully issued an eight-year €800m bond earlier this month.

(Pic: Romain Doucelin/NurPhoto via Getty Images)