Danone’s sales beat expectations last quarter as strong growth in China made up for an ongoing slowdown in North America.
The owner of brands such as Evian and Alpro said third-quarter sales grew 4.8% on a like-for-like basis to €6.9bn, ahead of the 4.3% growth expected by analysts.
This was driven by a standout performance in its China, North Asia and Oceania region, where like-for-like sales grew 13.8%.
Its growth in China was led by infant milk formula, medical nutrition and Mizone water, while in Japan, Activia and Oikos delivered double-digit sales growth.
In Europe, Danone sales rose 2.6% in the quarter as volumes grew 2.1%. The company pointed to a good performance in “functional dairy” products such as Danone Skyr and Activia Kefir, as well as double-digit growth in adult medical nutrition.
“We are particularly pleased with the step-by-step improvement in Europe, where volume/mix has now been positive for eight consecutive quarters,” said CEO Antoine de Saint-Affrique.
In North America, however, sales rose a more modest 1.5% as demand for protein products helped offset weakness in coffee creamers.
Danone said its full-year 2025 forecast was still in line with its mid-term ambition of like-for-like sales growth of between 3% and 5%.
“The bar was quite high this quarter but Danone have hit it,” said analysts at Barclays. “China was a standout but what is equally pleasing is the sequential improvement in European volumes.”
Danone launched its Renew Danone strategy in 2022 in a bid to turn the company into “a truly science‑based, consumer and patient‑centric company”.
The strategy is helping Danone outperform its rivals Unilever and Nestlé, who grew sales by 3.9% and 4.3% respectively in the last quarter. Danone’s share price is now up 20% since the start of the year.
Last week, de Saint-Affrique said the food industry is at a “tipping point” due to changes in demographics, consumer preferences and scientific advances.
“You just have to look at demographics – there are more elderly people not in an amazing state [of health] and you look at the impact of food on health, and look at the science,” he told the Financial Times.
No comments yet