Sales increased by 10.5% like-for-like to €6.96bn ($7.68bn) in Q1, surpassing estimates for 7.3% growth. This was Danone's quickest quarterly growth rate in ten years. At 0811 GMT, Danone shares increased by 1% at €61.08, outperforming the wider market. All three of Danone's businesses contributed to growth, with Specialised Nutrition and Waters performing particularly well. Danone raised its prices by 10.3% during the quarter while sales volume remained positive, up 0.2%. Like its rivals Nestle and Unilever, Danone has increased prices due to higher commodities and supply chain costs but faces the challenge of determining how much prices can rise before consumers stop buying. The company's finance chief, Juergen Esser, stated that Danone had yet to see a shift in consumer behavior, but he predicted a "gradual easing through the year" as prices had likely reached their peak. Infant Nutrition, Adult and Pediatric Specialties in China had a particularly strong start to the year with double-digit growth, while the Mizone brand in Waters demonstrated "an encouraging start" as travel conditions improved with the lifting of COVID-19 restrictions, according to Esser.

Performance of Danone SA during last 5 years. (Source: Investing)