Higher prices lift Danone Q3 sales, Mizone in China weighs

PARIS, Oct 28 (Reuters) - Danone DANO.PA reported better-than-expected organic sales growth of 4% for the third quarter on Wednesday, led by price increases to cope with growing inflation costs as a struggling Mizone water business in China amid adverse weather weighed on volume growth.

The French consumer goods group, whose brands include Evian and Badoit water and Activia yogurt, kept its 2026 full year targets.

• "In an environment that remains volatile, we reiterate our full-year guidance with confidence," CEO Antoine de Saint-Affrique said in a statement.

• Danone said third-quarter sales reached €7.233 bln, a 4.0% rise on a like-for-like basis, compared with expectations of 3.7% in a company-compiled analysts' consensus.

• The company reported overall prices rose 3.6% in the third quarter, while volumes were up just 0.4%.

• Danone reiterated its 2026 guidance in line with its mid-term aims of like-for-like sales growth of 3% to 5%, with recurring operating income growing faster than sales.