Danone Q1 Sales Outpace Expectations on Strong China Demand and Resilient Pricing
Danone reported first-quarter sales on Tuesday that surpassed analyst expectations, buoyed by strong demand in China and firm pricing in key markets. The French food and beverage group posted like-for-like sales growth of 4.1%, beating the 3.3% consensus forecast, underscoring the success of its strategic portfolio focus and pricing discipline.
The performance was driven primarily by its Specialized Nutrition unit, which saw sales climb 4.9%, spurred by “double-digit growth” in infant formula demand in China. Danone noted that its domestic Chinese business, distinct from cross-border sales, outperformed the market, marking a promising start to 2025 for the category.
The Essential Dairy and Plant-Based (EDP) division recorded 3.8% growth, supported by solid volumes in Europe and gains in Latin America. Yogurt brands such as Actimel and Oikos performed particularly well, demonstrating consumer resilience and brand strength despite pressure on household spending.
Meanwhile, the Waters division saw 3.5% growth as demand held up across emerging markets, with notable strength in Asia and Latin America. Premium water brand Evian showed “mid single-digit” growth across both retail and out-of-home channels.
CEO Antoine de Saint-Affrique said the company’s Q1 performance validates its Renew Danone transformation strategy, now entering its third and final phase. “We’re continuing to grow responsibly, investing behind our brands while restoring our margins,” he said.
Danone maintained its full-year guidance of 3–5% like-for-like sales growth and moderate recurring margin improvement. The strong start to the year positions the group firmly against a backdrop of inflationary pressures and shifting consumer behaviors in global FMCG markets.
Industry analysts are watching Danone’s progress closely, particularly as it navigates the high-growth potential of China’s nutrition sector amid increasing health consciousness and evolving demographics. Additionally, its focus on innovation in plant-based and premium water offerings reflects broader consumer trends within the global CPG landscape.