Danone's Steady Growth Amid Currency Challenges

Global food and drink giant Danone has reported a 4.1% increase in sales for Q2 2025, reaching €6.9 billion on a like-for-like basis. This growth was fueled by a 3.2% increase from volume/mix and a 1% rise in price. However, reported sales saw a 0.4% decline due to a 4.9% negative impact from currency fluctuations, most notably involving the US dollar, Mexican peso, Chinese renminbi, and Argentine peso. Hyperinflation contributed 0.7% positively, with no impact from scope effects for the quarter. For the first half of 2025, Danone's sales climbed to €13.7 billion, a 4.2% increase on a like-for-like basis, despite a 0.1% decline on a reported basis due to currency impacts and scope effects from divesting Horizon Organic and Wallaby.

Regional performances varied, with Europe showing a 2.2% rise LFL, North America at 2.3%, and exceptional growth in China, North Asia & Oceania by 12.4% LFL. Growth in Asia, Middle East, and Africa was 4.1% LFL. April saw Danone's successful issuance of an €800 million bond. The company also announced acquisitions, expanding its portfolio with Kate Farms and The Akkermansia Company. CEO Antoine de Saint-Affrique emphasized the strength and resilience driven by Danone's health-focused strategy and recent strategic acquisitions.