Danone’s waters sales fall 21% in the first half of the year.
PARIS: During the first half of the year, the Essential Dairy and Plant-based (EDP) division of Danone SA performed well despite the coronavirus (COVID-19) pandemic. The out-of-home demand for single-serve bottled water decreased, but the company’s Waters business could not make the same claim.
With sales of €6.6 billion ($7.8 billion), EDP reported a flat performance in comparison to the first half of 2019. Sales of Waters dropped from €2.35 billion to €1.85 billion ($2.19 billion), a 21% decline.
During an earnings call on July 30, Cécile Cabanis, EDP’s chief financial officer, reported that the company’s brands Silk, Horizon, Alpro, Actimel, and Danette saw double-digit percentage increases in volume.
“If you look at it now, almost one in two American families drink plant-based beverages, compared to 30% when we acquired WhiteWave (in 2017),” the speaker stated. “Our portfolio of brands, particularly So Delicious and Horizon Organic, which gained market share during that period, benefited broadly from this.”
Danone anticipates continued at-home consumption in North America and Europe during the remainder of the year, which should help EDP, according to Ms. Cabanis.
According to Ms. Cabanis, sales decreases within Waters ranged from 20% to 40% in all geographic zones. COVID-19 spread to new areas according to her, in the second quarter, which showed the entire impact of out-of-home closures in Europe and other nations. According to her, May was Waters’ lowest point.