French dairy major Danone has announced a robust start to 2025, with first-quarter sales reaching €6.84 billion (£5.89bn), representing a 4.3 per cent increase on a like-for-like basis.
The growth was driven by both volume/mix (+1.9%) and price (+2.4%), with positive volume/mix contributions across all product categories.
"With a 4.3 per cent like-for-like sales growth in Q1, we have delivered a strong start to the year, across all categories, demonstrating the strength of our execution and the relevance of our health-focused portfolio," said Antoine de Saint-Affrique, CEO of Danone.
"In the current uncertain environment, our science-based innovations, our consumer and patient-centric approach, and our increasingly diversified channel footprint further contribute to the resilience of our business."
Danone's performance varied across regions, with China, North Asia & Oceania emerging as the standout performer with a remarkable 9.9 per cent like-for-like sales growth. This was primarily driven by a strong 10.4 per cent increase in volume/mix.
Latin America also delivered impressive growth of 9.0 per cent on a like-for-like basis, although this was primarily price-driven, with volume/mix declining by 2.1 per cent.
North America maintained solid growth at 3.7 per cent, with a positive volume/mix contribution of 0.9 per cent, despite a 5.9 per cent decline in reported sales.
European operations showed consistent progress with a 2.0 per cent increase in like-for-like sales, supported by positive volume/mix growth of 1.9 per cent for the sixth consecutive quarter.
All three of Danone's product categories contributed to the positive results:
- Specialized Nutrition led the way with 5.3 per cent like-for-like growth
- Waters achieved 4.1 per cent growth
- Essential Dairy and Plant-based products (EDP) delivered 3.7 per cent growth
The company's functional products performed particularly well in Europe, with the YoPro, Alpro, and Actimel brands highlighted as key contributors. The Waters category showed strong growth ahead of the summer season, led by evian, Volvic, and Zywiec Zdroj brands.
Danone has confirmed its guidance for 2025, projecting like-for-like sales growth between 3 per cent and 5 per cent, with recurring operating income expected to grow faster than sales.
"We are confident that 2025 will be another year where we deliver on our value creation model, aligned with our mid-term ambitions," added de Saint-Affrique.
