Danone has reported a better-than-expected 4.7% rise in underlying third-quarter sales, helped by a strong recovery in demand for infant milk formula and water products in China.
But the world's largest yoghurt maker, whose brands include Actimel and Activia, said that challenging conditions had impacted its dairy business in recession-hit Brazil.
Sales in Brazil fell by double-digits and Danone said it is currently restructuring its products portfolio.
The dairy business slightly improved in north America, where the integration of its acquisition of US organic food group Whitewave was on track, although the overall sales trend remained negative.
Danone, the latest European consumer goods group under pressure from investors calling for better returns, reiterated its full-year guidance, and gave more details on this.
It now expected 2017 recurring earnings per share (EPS) growth to exceed 12% at constant exchange rates, having previously forecast double-digit growth.
The company's chief executive Emmanuel Faber said the quarterly performance "confirms my confidence in meeting our objectives for the year, delivering solid shareholder returns, and positioning the company for long-term sustainable growth."
Third-quarter sales reached €6.454 billion, with like-for-like sales growth of 4.7% compared to 0.2% in the second quarter.
The performance came above the company-compiled average of analyst estimates for 2.8% growth in group sales.
For 2017, Danone also reiterated it expected a "moderate" like-for-like sales growth and a "sustained" improvement on recurring operating margins on a like-for-like basis.
Danone has suffered slower growth than its rivals, which include Nestle and Unilever, largely due to weakness in its dairy business in Europe which has had to contend with slow consumption and private label competition.
Its dairy business was hit by a relatively unsuccessful Activia re-launch in Europe, while in China its baby food and waters businesses have faced regulatory issues.
Its 'Specialised Nutrition' unit, which now regroups baby food and medical nutrition products, delivered robust 17.8% growth in the third quarter after 5.5% growth in the second quarter.
This was driven by growth of more than 50% in demand for Danone's infant formula brands in China where the market was now growing by 10%, helped by a sharp rise in birth rates tied to the end of the one-child policy, a growing urbanisation and affluent middle class.
The performance was also helped by a favourable year-on-year comparison.
