Danone reported a 4.8% rise in like-for-like sales for the third quarter on Tuesday, beating expectations and reaffirming its 2025 targets. The company credited its strong performance in China, North Asia, and Oceania, which largely offset the weakness in coffee creamers amid a competitive U.S. market.
Revenue for the period reached EUR6.88 billion. Analysts had forecast a like-for-like growth of 4.3%, according to a consensus provided by Danone.
The food group confirmed its full-year objectives, including like-for-like sales growth between 3% and 5%, with recurring operating income expected to grow faster than sales.
Meanwhile, the owner of Activia yogurts and Evian water raised its prices by 1.6%, compared to a consensus estimate of a 1.4% increase.
The quarterly performance, driven by volume growth across all Danone categories, reflects "the strength and relevance of our health-focused portfolio," said CEO Antoine de Saint-Affrique in a statement.
Thanks to its focus on health and science, Danone delivered quarterly sales growth ahead of Unilever, which posted 3.9%, and Nestlé, which reported a 4.3% increase.
China, North Asia, and Oceania were the top-performing regions, with sales growth of 13.8%.
Specialized Nutrition, including infant formula and Medical Nutrition, along with water brands such as Mizone, supported performance in China, while Activia and Oikos recorded double-digit growth in Japan.
In Europe, Danone continued its improvement with like-for-like sales growth of 2.6%, driven by volume and mix progression.
This reflects strong performance from Evian water and "functional" dairy products, notably Danone Skyr, Activia Kefir, and YoPro, which are high in protein.
However, in North America, growth was more modest, with like-for-like sales up 1.5%. Demand for protein-rich products such as Oikos Greek yogurt helped offset the weakness in coffee creamers in the United States.
(Written by Elena Smirnova and Dominique Vidalon, edited by Kate Entringer)
