A focus on core performers, while keeping losing brands and business segments in check, has added impressive bulk to Danone’s full year report card.
Sales upped 4.3% to over €27m on the back of a volume rise of 3% and stable price rises of 1.3%, the fifth consecutive quarter of positive financials for the business.
Reported growth was 0.9% down on the previous year. However, the business was now at the end of the first chapter of its ‘Renewed’ strategy, which refocused the business on driving presence in science-based and medical-forward segments, said CEO Antoine de Saint-Affrique.
Fourth quarter sales contributed significantly to Danone’s final ratings, with total value and volume sales up 4.7% and 4.2% respectively over the period.
All of which contributed to a strong and growing start to share trading this morning, with Danone’s prices up 1.70%, compared to Unilever’s down still on the news of Hein Schumacher’s resignation.
Danone’s growth areas shine
Danone’s top performers included double-digit growth in high protein, coffee creation and medical nutrition.
Essential dairy and plant-based (EDP) put in a fifth consecutive quarter of volume and value growth, while top-selling Chinese vitamin drink brand Mizone grew sales 12% on the year.
Focus on health through food, a continually growing trend among consumers globally, has paid off with 88% of consumers asked linking the business’s products to health.
This, alongside a movement towards boosting consumption in away-from-home, impulse, pharmacies, hospitals and homecare, has bolstered sales growth by 50%.
| Category | Europe sales % | North America sales % | APAC sales % | AMEA sales % |
|---|---|---|---|---|
| EDP | +0.9% | +5.4% | +11.6% | +3.8% |
| Specialised nutrition | +1.4% | -3% | +6.3% | +4.6% |
| Waters | +3.6% | +10.9% | +12.2% | +5.1% |
| Total company | 1.7% | +5.2% | +8% | +4.3% |
Overall, EDP sales rose 3.8% to €13.4m, specialised nutrition was up 4.6% to €8.9m and waters grew 5.1% to €4.9m.
“In 2024, the quality of our growth has further improved,” said de Saint-Affrique.
Where will Danone grow next
“This allowed us to drive operating leverage, enabling us to further reinvest in our brands and capabilities, and support the growth of our categories while maintaining a strong financial discipline.”
However, he caveated the food industry was now at a tipping point, though hastened to add Danone’s “unique” health-driven portfolio, along with its renewed focus on science, allowed it to sit in a position of confidence.
“Our focus on value creation and return-oriented capital allocation led to a significant improvement of our ROIC, now back into double-digit territory,” he added.
| Sales | EDP | Health | Water |
|---|---|---|---|
| FY | €13.4m | €8.9m | €4.9m |
| LfL | +3.8% | +4.6% | +5.1% |
| Volume | +2.7% | +3.4% | +2.9% |
| Price | +1% | +1.2% | +2.2% |
Broken down by territory, in Europe Danone will focus on further boosting volume growth, paying attention to growing its EDP portfolio and building on strong water performance with Evian and Volvic.
In North America, high protein, coffee creations and water will take attention, while it will refocus on specialised nutrition in the market, where sales slipped.
All other territories will continue to build on the business’s core brand focus.
As such, guidance on 2025 was positive, with expectations the business will continue to grow in the next financial year, between 3% to 5%.
