Danone, the world’s biggest yogurt maker, reported a gain in earnings as Chinese consumers snapped up more infant formula and dairy sales picked up in North America.
Adjusted operating profit rose 7.9 percent on a like-for-like basis to 1.78 billion euros ($2 billion), just short of the analyst consensus, while revenue growth beat estimates. The stock rose as much as 2.1 percent in early trading.
The results are the latest example of Danone outperforming rivals Nestle SA and Reckitt Benckiser Group Plc in baby food, especially in China, where the maker of Aptamil baby formula had 30 percent sales growth in the second quarter thanks to expansion in e-commerce and mom-and-baby store networks. The business faces a slowdown in the rest of the year due to a tough comparison base. That comes as Danone’s dairy business is showing some signs of a turnaround.
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