Danone exceeded 2025 sales and cash flow expectations with 4.5% like-for-like sales growth
Strong performance in China's medical nutrition and baby food markets drove results
Company improved profit margin to 13.4% through cost cuts despite competitive US market challenges
Danone remains confident in 2026 forecast targeting 3-5% sales growth
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French food group Danone announced on February 20, 2026 in Paris that it delivered 2025 sales and cash above analysts' expectations while improving its profit margin through cost cuts, driven primarily by sustained demand for medical nutrition and baby food in China. The consumer goods giant, whose brands include Evian and Badoit water and Activia yoghurt, reported 2025 sales of 27.28 billion euros ($32.07 billion), a like-for-like rise of 4.5%, surpassing analysts' consensus expectations of 4.4%. The recurring operating margin for 2025 rose to 13.4% of sales from 13% in 2024, precisely meeting forecasts, while free cash flow reached 2.8 billion euros, exceeding analyst expectations of 2.5 billion euros. Danone's strong performance in China largely offset weakness in coffee creamers within the competitive U.S. market, demonstrating the resilience of its diversified product portfolio. The company also addressed concerns regarding infant formula recalls tied to a contamination scare with the toxin cereulide, stating that the financial impact was 'not material' at this stage, with a complete assessment to follow once recalls have been completed. Looking ahead to 2026, Danone expressed confidence that its forecast aligns with its mid-term ambition of achieving like-for-like sales growth of 3-5%, with recurring operating income growing faster than sales.
Profit margin, sometimes referred to as Accountability Margin, is a financial ratio that measures the percentage of profit earned by a company in relation to its revenue. Expressed as a percentage, it indicates how much profit the company makes for every dollar of revenue generated. Profit margin is...
Food groups categorise foods for educational purposes, usually grouping together foods with similar nutritional properties or biological classifications. Food groups are often used in nutrition guides, although the number of groups used can vary widely.
Food groups were a public health education con...
Danone S.A. (French pronunciation: [danɔn]) is a French multinational food-products corporation based in Paris. It was founded in 1919 in Barcelona, Spain. It is listed on Euronext Paris, where it is a component of the CAC 40 stock market index.
Danone's stronger-than-expected 2025 sales and improved margin give the company a solid footing for 2026, reassuring investors amid ongoing infant formula recall concerns. The results also highlight the resilience of its China market, offsetting weaker U.S. segments.
Context & Background
2025 sales exceeded analyst expectations by 0.1 percentage points
Recurring operating margin rose to 13.4% from 13% in 2024
China demand for medical nutrition and baby food offset U.S. weakness
Danone's infant formula recalls deemed not material at this stage
Free cash flow surpassed forecasts at 2.8 billion euros
What Happens Next
Danone will maintain its 3-5% like-for-like sales growth target for 2026, aiming for higher operating income. The company will finalize the impact assessment of the infant formula recalls once the recall process completes, potentially adjusting future guidance.
Frequently Asked Questions
What is the significance of Danone's 2025 sales performance?
It shows resilience in key markets and supports confidence for 2026.
How does Danone plan to address the infant formula recall issue?
It will finalize impact assessment after recalls complete and currently considers it not material.
What are Danone's growth expectations for 2026?
It aims for 3-5% like-for-like sales growth and higher recurring operating income.
Original Source
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Nvidia and OpenAI close to finalizing smaller, $30 bln investment- FT U.S. stocks end lower after hawkish Fed minutes; Walmart guidance falls short Gold largely flat as investors weigh geopolitical tensions, hawkish Fed minutes Stocks dip and oil climbs as Trump turns up the heat on Iran (South Africa Philippines Nigeria) Food group Danone confident over 2026 after China drives 2025 sales beat By Reuters Stock Markets Published 02/20/2026, 01:35 AM Updated 02/20/2026, 01:36 AM Food group Danone confident over 2026 after China drives 2025 sales beat 0 DANO 2.55% PARIS, Feb 20 - French food group Danone said it was starting 2026 with confidence after it delivered 2025 sales and cash above analysts’ expectations, and improved its profit margin thanks to cost cuts. Danone , which like rival Nestle faces investor pressure to spell out the financial impact of infant formula recalls tied to a contamination scare with the toxin cereulide, also said that at this stage that impact was "not material". "Impact assessment will be finalized once the recalls have been completed," it added The consumer goods giant, whose brands include Evian and Badoit water and Activia yoghurt, reported 2025 sales of 27.28 billion euros ($32.07 billion), a like-for-like rise of 4.5%, compared with analysts’ expectations of 4.4% in a company-provided consensus. The performance reflected sustained demand for medical nutrition and baby food in China which largely offset weakness in coffee creamers in a competitive U.S. market. The recurring operating margin for 2025 rose to 13.4% of sales from 13% in 2024, bang in line with expectations of 13.4%. Free cash flow reached 2.8 billion euros, above analysts expectations of 2.5 billion euros. For 2026, Danone said its forecast was in line with its mid-term ambition of like-for-like sales growth of 3-5%, with recurring operating income growing faster than sales. ($1 = 0.8508 euros)
