Danone shines after solid first-quarter performance
The food and beverage giant is leading the CAC 40 in mid-morning trading, climbing 3.28% after reporting first-quarter sales that slightly exceeded expectations.
Danone generated revenue of 6.71 billion euros in the first quarter of 2026, up 2.7% on a like-for-like basis, marginally ahead of the 2.6% consensus. However, growth slowed compared to the fourth quarter of 2025, when it stood at 4.7%.
Activity was supported by both a 1.5% volume/mix effect and a 1.2% price contribution, with volume/mix growth across all categories. In an environment marked by infant formula recalls and tensions in the Middle East, the Europe, Middle East, and Africa region showed resilience (+0.6%). Momentum improved in the Americas (+3.4%), driven by a strong performance in Latin America and early signs of recovery in the United States.
The Asia-Pacific region, meanwhile, posted a solid performance (+6%), fueled notably by specialized nutrition in China and dairy and plant-based products in Japan.
Against this backdrop, the group confirmed its 2026 targets, in line with its medium-term ambitions, aiming for like-for-like sales growth between 3% and 5%, as well as recurring operating income growth outpacing sales.
Analysts welcomed the reassuring release. Jefferies reaffirmed its "buy" rating, highlighting sales in line with consensus and above its own expectations. Adjusted for the impact of recalls, organic growth was close to 4%, with improving dynamics in the U.S. and a robust performance in China despite supply chain pressures.
Oddo BHF described the first quarter as "well-balanced and high-quality," maintaining its "outperform" rating.
Since the beginning of the year, however, Danone shares have declined by approximately 10%.
Danone is one the world leading food-processing groups. Net sales break down by family of products as follows:
- dairy products and plant products (48.2%; No. 1 worldwide): fresh fermented milk products, creams, products and drinks of plant origin (based in particular on soya, almond, hazelnut, rice, oats and coconut);
- specialized nutrition products (34%): baby foods (No. 2 worldwide; foods for infants and young children in addition to breastfeeding) and medical nutrition products (foods for people suffering from certain pathologies or people weakened by age);
- bottled water (17.8%; No. 2 worldwide): natural water, aromatized water or enriched in vitamins (brands Evian, Volvic, Badoit, Aqua, etc.).
At the end of 2025, the group had more than 180 production sites throughout the world.
Net sales are distributed geographically as follows: Europe (35.8%), North America (23.2%), China/North Asia/Oceania (14.5%), Asia/Middle East/Africa (16.3%) and Latin America (10.2%).
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