Danone Beats Q1 Sales Expectations on Robust Demand in China and Specialized Nutrition
Danone reported stronger-than-expected first-quarter sales, driven by surging demand for infant nutrition products in China and pricing growth across several key markets. The French food and beverage giant posted a 4.1% increase in like-for-like sales, outperforming analysts’ consensus forecast of 3.3% growth.
Total revenue for the quarter reached €6.79 billion, boosted by a 7% growth in Specialized Nutrition, which includes infant formula and medical nutrition. The performance was particularly lifted by strong demand in China and Indonesia, where the company is gaining momentum amid stiff competition. CEO Antoine de Saint-Affrique noted that this business line saw “a very, very strong start of the year.”
Danone’s performance in China marks a notable turnaround, following years of sluggish sales driven by declining birth rates and intense local competition. The firm’s recent strategy has focused on premium and medical-grade products rather than mainstream infant formulas, and this realignment appears to be paying off. Sales to Chinese consumers living abroad also contributed positively to the quarter.
Globally, Danone implemented 4.2% in price increases during the quarter, while sales volumes held steady, signaling resilient consumer demand despite purchasing power headwinds in some regions. The Waters division achieved 5% growth, boosted by strong performance from flagship brands Evian and Volvic. Meanwhile, Essential Dairy and Plant-Based products grew modestly by 1.5%, supported by steady demand for coffee creamers and dairy-based beverages in Europe and North America.
Danone reaffirmed its full-year forecast of 3–5% like-for-like net sales growth, alongside moderate improvement in its recurring operating margin. While noting that comparative sales figures will become tougher in the coming quarters, Saint-Affrique maintained that the group’s performance was in line with its ‘Renew’ strategy, which emphasizes selective growth and portfolio optimization.
For FMCG stakeholders, Danone’s Q1 results underscore the strategic value of premiumization in mature and emerging markets, as well as the resilience of specialized nutrition within global health-conscious consumer trends. The company’s continued focus on value-driven innovation and regional agility appears to be positioning it for sustainable growth despite macroeconomic uncertainty.