About Danone and its Relevance
Danone is a French multinational food company specializing in baby food, water, health and nutrition products. Established in 1900 by Henri Nestlé’s son-in-law, Auguste Pieu, the company has grown to become a global leader in its industry. Danone’s commitment to sustainability, health, and well-being has positioned it as a key player in the food sector.
Q3 Financial Performance
Danone reported total revenues of €20,578 million by September, marking a stagnant figure in absolute terms. However, the company’s comparable sales grew by 4.4%, excluding currency and portfolio impacts, while the volume of products sold increased by 2.8%.
Regional Performance
- Europe: Revenues increased by 2.3%, reaching €7,375 million.
- North America: Revenues declined by 3.8%, totaling €4,757 million.
- China, Nordic Asia, and Oceania: Revenues rose by 8.6%, reaching €3,048 million.
- Latin America: Revenues fell by 8.8%, totaling €2,066 million.
- Rest of Asia, Middle East, and Africa: Revenues decreased by 0.5%, totaling €3,332 million.
Divisional Performance
- Dairy products: Sales declined by 2.1%, reaching €9,853 million.
- Specialized Nutrition: Sales increased by 4.6%, reaching €6,904 million.
- Water: Sales decreased by 2.2%, reaching €3,822 million.
Q3 Performance Highlights
In the third quarter alone, Danone’s revenue amounted to €6,876 million, a 0.7% increase in absolute terms and 4.8% in comparable terms. The volume growth was 3.2%.
“We have continued to register steady and quality growth during this quarter, with volume being the primary growth driver across all our categories, confirming the solidity and relevance of our health-focused portfolio,” said Danone’s CEO, Antoine de Saint-Affrique.
“We are particularly pleased with the gradual improvement in Europe, where volume/mix has been positive for eight consecutive quarters, while China, Nordic Asia, and Oceania have once again delivered excellent results across all areas,” he added.
Future Outlook
Danone confirmed its outlook for 2025, with comparable sales expected to grow between 3% and 5%, and operating recurring revenues advancing at a faster pace than those sales.
Key Questions and Answers
- Q: Who is Danone and why is it relevant? Danone is a French multinational food company specializing in baby food, water, health, and nutrition products. Its commitment to sustainability, health, and well-being positions it as a key player in the food sector.
- Q: What were Danone’s Q3 financial results? Danone reported total revenues of €20,578 million by September, with a 4.4% growth in comparable sales and a 2.8% increase in product volume sold. The company saw mixed regional performance, with growth in China and declines in Latin America and stagnation in Europe.
- Q: How did Danone’s divisions perform in Q3? The dairy products division saw a 2.1% sales decline, while specialized nutrition grew by 4.6%. Water division sales decreased by 2.2%.
- Q: What are Danone’s outlook projections for 2025? Danone expects comparable sales to grow between 3% and 5%, with operating recurring revenues advancing at a faster pace than sales.
