(Bloomberg) — Danone SA reported resilient sales growth in the final months of last year, buoyed by demand for high-protein dairy products and bottled waters in North America.
Most Read from Bloomberg
Like-for-like sales rose 4.7% in the fourth quarter, the producer of Volvic water and Activia yogurt said Wednesday, surpassing analysts’ estimates. Sales jumped 7.7% in North America and 6.8% in the region including China.
Chief Executive Officer Antoine de Saint-Affrique has made volume growth a priority as consumer goods companies try to claw back the market share they lost to cheaper store brands when shoppers traded down during a period of high inflation. Danone reported higher-than-expected volume-mix last quarter, an indication customers are choosing more expensive brands.
Danone shares rose as much as 2.4% in early Paris trading. The stock has climbed about 17% in the past 12 months.
However, the yogurt maker cautiously forecast like-for-like sales growth of between 3% and 5% in 2025, matching its target from last year, an outlook that Jefferies analyst David Hayes described as “uninspiring.”
De Saint-Affrique has staked the next stage of the company’s turnaround on the growth of medical nutrition, which includes food designed for cancer patients and the elderly.
He has also bet on a boost from a trend towards healthy eating, especially in the US, with the adoption of obesity and diabetes medications. It’s among a group of companies hoping to ameliorate potential side effects from Ozempic and other GLP-1 drugs, such as muscle loss, with high-protein items.
Danone is likely to record only moderate margin expansion this year and could consider more acquisitions to boost areas of weakness, said Hayes.
(Adds shares, details from results and analyst comment)
Most Read from Bloomberg Businessweek
©2025 Bloomberg L.P.
