Danone, the world's biggest yogurt maker, reported third-quarter revenue growth that missed analysts' estimates as sales of dairy products in Spain and Italy fell.
Revenue adjusted for acquisitions, divestments and currency swings rose 5 per cent, the Paris-based company said today in an e-mailed statement.
That trailed a 6.1 per cent average of 15 analysts' estimates.
Total revenue rose to €5.26 billion from €4.81 billion a year earlier.
The maker of Actimel yogurt suffered declines of more than 10 per cent in third-quarter sales in Spain and Italy.
Danone cut its profitability forecast June 19 as Spanish shoppers switched to cheaper products and raw-material costs increased.
"Pressure on consumer spending in Europe continued, and the situation deteriorated further in southern Europe, affecting sales for the business lines most exposed to this region," chairman Franck Riboud said in the statement.
Danone reiterated its guidance for the year, saying like-for-like revenue is expected to rise 5 per cent to 7 per cent, while the operating margin will probably narrow by 0.5 percentage points on a like-for-like basis.
"The dairy division again saw a negative volume momentum that was disappointing," ING Bank analyst Marco Gulpers said in a phone interview.
"It mainly relates to southern Europe performance further deteriorating. Everybody will have to take their numbers down."
Bloomberg
