1232 GMT - In 2025, European food producers are expected to face tough comparatives as post-pandemic pricing normalizes, Barclays analysts say in a note. Following years of organic sales growth led by higher prices, investors are looking to the fourth quarter of 2024 to assess whether a recent pick up in sales volumes can continue, they say. Unilever, Nestle and Danone reported positive performances over the last two quarters, averaging 2.5% volume growth--a trend expected to continue in the last quarter of 2024. However, looking ahead to 2025, the sector faces a challenge to deliver "volume growth on volume growth," particularly from the second quarter, the analysts note. Sustained momentum will require an increase in market share boosted by innovation and new product pipelines, they say. For instance, food producers are expected to launch a number of products designed for weight-loss drug consumers. (michael.susin@wsj.com)
(END) Dow Jones Newswires
January 13, 2025 07:32 ET (12:32 GMT)
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