Danone SA returned to volume/mix growth in fiscal-year 2024 with an increase of 3%, which followed declines of 0.8% in fiscal 2022 and 0.4% in fiscal 2023.
“We have been, over the last three years working at rebalancing our growth model between price and volume mix, and there, we have made consistent progress,” said Antoine de Saint-Affrique, chief executive officer, in a Feb. 26 earnings call. “Quarter four marks the sixth consecutive quarter of volume/mix improvements.”
Net income of €2.02 billion ($2.12 billion), or €3.13 ($3.29) per share on the common stock, more than doubled net income of €881 million ($925 million), or €1.36 per share, in the previous fiscal year. Sales dipped 0.9% to €27.38 billion ($28.74 billion) from €27.62 billion. Like-for-like sales growth was 4.3%.
“We are progressively becoming a different company, truly science-based and consumer- and patient-focused, a company which stands for health through food, a company which is rediscovering the power of execution and consistency,” de Saint-Affrique said.
He pointed to Danone products, including yogurt, that align with consumers seeking health and wellness benefits.
Photo: ©SHEILAF2002 – STOCK.ADOBE.COMIn Danone’s Essential Dairy and Plant-based Protein (EDP) segment, sales dropped 6% to €13.46 billion from €14.32 billion, but like-for-like sales increased 3.8%.
“Our leading platform of high protein continued to grow double digit, and we have landed this year meaningful innovations, notably with the muscle recovery claims on high protein as well as a new great tasting kefir product in Europe under the Activia brand,” said Juergen Esser, group deputy CEO in charge of finance, technology and data.
The high protein levels of yogurt may appeal to users of GLP-1 weight-loss medications worried about the risk of muscle loss, de Saint-Affrique said.
“We see, by the way, no slowing down of the GLP-1 trend in the US,” he said. “Interestingly, we see in the US a push for more natural and healthier food with the new (President Trump) administration, which happens to be very much in sync with what we are selling. So we look at the market with some appetite.
“When it comes to Europe, I think it’s not a question of saturation, but Europe has always been slower in adopting new trends or new fashion. The problem of obesity is the same in Europe to a slightly different degree, but the trend of obesity is very important in Europe. The reason I think — I would not hold me on that — while the adoption is a bit slower, it’s obviously the legalities of registering and the legalities of reimbursing or not reversing in Europe are much more complicated and longer than in the US.”
In Danone’s Waters segment, sales increased 3.8% to €4.98 billion from €4.79 billion with like-for-like sales up 5.1%. Esser noted Mizone sales increasing by double-digit percentages in China and a strong Evian brand performance in Europea and North America. In Specialized Nutrition, sales increased 5.1% to €8.94 billion from €8.50 billion with like-for-like sales up 4.6%.
In North America in the fiscal year, sales declined 4.5% to €6.58 billion ($6.90 billion) from €6.89 billion, but like-for-like sales increased 5.2% and volume/mix was up 4.1%. In the fourth quarter, sales fell 5.2% to €1.64 billion from €1.73 billion, but like-for-like sales increased 8% and volume/mix rose 6%.
“In dairy, the performance was driven by the exceptional growth of our high-protein platform, namely Oikos, which was benefiting in this last quarter from a particularly strong demand for the yogurt category,” Esser said of the fourth quarter in North America. “Also, our coffee creations portfolio delivered another quarter of strong growth, driven by both brands, International Delight and Stōk coffee.”
Companywide in fiscal 2025, Danone expects like-for-like sales growth between 3% and 5%.
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