Danone Reports 4.5% Sales Growth and Improved Operating Margin for 2025

France's leading dairy producer, Danone, has reported a 4.5% rise in like-for-like sales for the fiscal year 2025. The growth was attributed to a combination of volume and price mix, as per their recent announcement.

The company also recorded a 44 basis points improvement in its recurring operating margin, which now stands at 13.4%. Recurring earnings per share increased by 4.6%, reaching €3.80. For the year 2025, Danone's total sales amounted to €27.28 billion, while recurring operating income was €3.67 billion, supplemented by a free cash flow of €2.80 billion.

Looking ahead, Danone expects a like-for-like sales growth ranging between 3% and 5% for 2026. The company anticipates that its recurring operating income will grow faster than its sales, maintaining a focus on a science-based and consumer-centric approach amidst market volatility.

The growth in Europe was driven by Essential Dairy and Plant-based products, along with Adult Medical Nutrition. In regions like China, North Asia, and Oceania, Specialized Nutrition and Essential Dairy and Plant-based products spearheaded the growth.

Analysts have given a 'buy' rating on Danone shares, with 13 recommendations for 'strong buy' or 'buy,' nine for 'hold,' and two for 'sell' or 'strong sell.' The average consensus for the food processing sector is also 'buy.' Currently, Wall Street's median 12-month price target for Danone SA is €78.00, which is about 5.2% higher than its closing price of €74.12 on February 19. The stock has been trading at 18 times the projected earnings for the next 12 months, compared to a price-to-earnings ratio of 19 three months ago.