US EditionFood group Danone confident about 2026 after China drives 2025 sales beat
Danone's 2025 sales rose 4.5% with strong demand in China driving growth despite infant formula recalls in Europe, and plans a 4.7% dividend increase, analysts said.
- On Feb 20, Danone reported 2025 sales of 27.28 billion euros, a like-for-like rise of 4.5%, helped by Chinese baby food demand, and expressed confidence for 2026.
- In recent weeks, demand in China for infant milk formula and medical nutrition largely offset weakness in coffee creamers, while investors focused on potential sales risks after infant formula recalls.
- After cost cuts and pricing changes, recurring operating margin rose to 13.4% and cash flow reached 2.8 billion euros, enabling a 4.7% dividend increase to 2.25 euros per share.
- For 2026, Danone said its forecast aligns with its mid-term ambition of sales growth and Antoine de Saint-Affrique, CEO, said `We enter the year with confidence, aligned with the mid-term ambition we have set out.`
- With heavy exposure to China, Danone’s recalls tied to cereulide contamination appear limited to Europe but analysts warn of reputational risk as infant formula in China accounts for around 17% of profits.
14 Articles
14 Articles
In presenting its annual results, the agri-food group stated that the withdrawal of its products from the market would have an impact that is not "significant", "between 0.5% and 1% of net sales" in the first quarter.
Despite the uproar surrounding baby food recalls, food giant Danone has not yet suffered much financially. In…
Danone confident about 2026 after China drives sales beat
French food group Danone said it was starting 2026 with confidence after it delivered 2025 sales and cash above analysts' expectations, helped by baby food demand in China, and improved its profit margin thanks to cost cuts.
According to the panelists, Danone has gained significant market shares since the beginning of the year on its main competitor. But "this type of crisis is no good news for anyone," says the group's managing director.
Food group Danone confident about 2026 after China drives 2025 sales beat
By Dominique Vidalon PARIS, Feb 20 (Reuters) – French food group Danone said it was starting 2026 with confidence after it delivered 2025 sales and cash above analysts’ expectations, helped by baby food demand in China, and improved its profit margin thanks to cost cuts. While the world remains “volatile”, CEO Antoine de Saint-Affrique said: “We enter the year with confidence, aligned with the mid-term ambition we have set out.” Danone, which …
Danone has released his first estimate of the possible losses he will face after removing various batches of infant formulas due to contamination with a bacterium. According to the food company, the financial impact will range between 35 and 70 million euros during the first quarter of the year. This is a spot blow that, according to the executive director, Juergen Esser, will be resolved progressively. In a call with industry analysts, the dire…
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