Danone Reports 4.2% Increase in Q2 Sales Amid Global Tensions

French dairy company Danone posted a 4.2% increase in like-for-like sales for the second quarter of 2026, amounting to €6.7 billion. The growth was attributed to a 1.9% rise from volume growth and a 2.3% increase from pricing. The company credits its 'health-focused' product portfolio for the solid performance.

For the first half of 2026, Danone reported a 3.5% increase in like-for-like sales to €13.9 billion, with a volume increase of 1.7%. The company's recurring operating income rose by 2.3% year-on-year to €1.85 billion. In the first half of the year, reported sales increased by 1.4%, which included a 0.7% positive scope effect due to the integration of Kate Farms and a joint venture with Saputo Dairy Australia.

CEO Antoine de Saint-Affrique highlighted strong demand across various categories, including High-Protein products, Medical Nutrition, and plant-based products in Europe. He noted progress in North America's Essential Dairy and Plant-based (EDP) segment and improving trends in Infant Milk Formula in the EMEA region.

Despite the unstable environment, Danone has maintained its financial year 2026 guidance, expecting like-for-like sales growth between 3% and 5% and a faster growth rate in recurring operating income compared to sales. The company remains confident in its value creation model and mid-term ambitions.

Earlier in the year, Danone faced challenges due to a global infant formula recall that affected several manufacturers, including Nestlé and Lactalis. However, the company has managed to recover from the initial sales impact.