The yoghurt maker delivered stronger-than-expected 7% sales growth in the first quarter. Selling higher volumes of food and drinks contributed more than 2% to sales growth, compared to consensus of 0.4%. Shares jumped 7%.

Inflation, however, sours the mood. Like-for-like sales in North America grew 6%, with more than 4% coming from higher prices. But compared to annual consumer inflation of 8.5% in March in the United States, those figures suggest there is a limit to Danone’s ability to pass on higher costs, meaning profits may take a hit if prices keep on rising. China, North Asia and Oceania did better, with sales rising 15%, mostly thanks to higher volumes. But that’s only a tenth of Danone’s business. Scaling back from Russia and disruption in Ukraine, which contributed 6% of sales read more , will worsen the headache for new Chief Executive Antoine de Saint-Affrique. (By Dasha Afanasieva)