Danone Sees Q1 Sales Boost Driven by Strong Chinese Demand for Infant Nutrition
Danone posted better-than-expected first-quarter sales, driven by a surge in demand for infant formula in China and resilient performance across its key categories. The global food and beverage giant reported a 4.1% rise in like-for-like sales for the quarter, surpassing analysts’ expectations of 3.8%, according to company data.
Asia-Pacific, particularly China, proved a bright spot, with the Infant Nutrition division growing at a mid-teens percentage rate. Danone credited this to favorable category dynamics, strong market execution, and Chinese consumers’ rising demand for premium, imported baby formula products—a key trend reshaping the infant nutrition landscape.
The company’s Essential Dairy and Plant-Based (EDP) division, which includes brands such as Actimel and Alpro, delivered modest growth. While the North American EDP business showed low single-digit gains, European markets experienced volume pressure, partly offset by pricing initiatives. Waters, another key business unit, posted slower performance amid high base effects and weather-related disruptions in some regions.
CEO Antoine de Saint-Affrique reaffirmed Danone’s full-year guidance of 3% to 5% like-for-like sales growth, citing continued progress under the company’s Renew Danone turnaround strategy. This framework aims to drive profitable growth through portfolio focus, innovation, and operational efficiencies.
Over the past two years, Danone has undertaken strategic changes, including divesting underperforming units and focusing resources on high-potential categories such as dairy, plant-based, and specialized nutrition. Recent investments in supply chain modernization and digitization are also expected to contribute to long-term margin expansion.
FMCG professionals should note the growing importance of premiumization in infant nutrition, especially in Asia, which is becoming a key battleground for multinational brands. Danone’s performance further underscores how geographic diversification, particularly exposure to emerging markets with strong demographic tailwinds, can buffer against softer consumption trends in Europe and North America.
As inflation begins to ease and volume growth re-emerges as a key driver in the sector, Danone’s early momentum in 2024 suggests that strategic portfolio alignment and execution discipline remain central to navigating an increasingly segmented and competitive global FMCG environment.