Danone Stock Earnings Reports

Danone delivered a strong 2025 driven by Chapter 2 of its Renew strategy: like-for-like sales +4.5% (volume/mix +2.7%), recurring operating margin up 44 bps to 13.4%, recurring EPS €3.80 (+4.6%), free cash flow €2.8bn and ROIC moved into double-digit territory (10.7%). Key growth engines were high-protein, gut-health/fiber, Infant Milk Formula (IMF) premiumization and Medical Nutrition (including the Kate Farms acquisition to build a ~$500m U.S. platform). Regionally, CNAO (China, North Asia & Oceania) was the standout (full-year LFL +11.7%), Europe showed steady recovery (+2.3% LFL) and North America underperformed (full-year +2% LFL) with specific weaknesses in plant-based and coffee creamers despite strong Oikos performance. The company emphasized continued investment behind innovation, manufacturing capacity (High Protein, Skyr, Kefir, Alpro, Medical Nutrition), digital/Industry 5.0 initiatives and supply‑chain/farmer programs (Danone Milk Academy, Partner for Growth). Danone disclosed ongoing recalls of certain IMF batches in Europe and the Middle East and expects a one-off Q1 supply disruption impact of c.0.5%–1% of net sales (50–100 bps at group level in Q1) but reiterated confidence in product safety and in its 2026 guidance: +3% to +5% like‑for‑like net sales with recurring operating income growing faster than sales. Dividend proposed €2.25 per share (~+5%).