French consumer goods giant Danone (BN) reported better-than-expected first-quarter sales, driven by strong demand for infant formula and medical nutrition products in China. This growth offset weaker sales in the competitive U.S. coffee creamer market. Danone, known for brands like Evian, Badoit, and Activia, reported Q1 2025 sales of €6.844 billion (approximately $7.79 billion), marking a 4.3% year-over-year increase, surpassing analysts' expectations of 3.8% growth.
CEO Antoine de Saint-Affrique highlighted the robust 4.3% sales growth across all categories, attributing it to the company's focused execution and health-oriented product portfolio. He noted that despite the uncertain environment, characterized by U.S. tariff uncertainties and weak consumer confidence, Danone's emphasis on health and science has made its business more resilient.
CFO Juergen Esser mentioned that while the U.S. coffee creamer segment faced intense competition, supply chain issues encountered in the first quarter have now been resolved. Danone reiterated its 2025 full-year forecast, aiming for 3% to 5% sales growth, with recurring operating profit growth expected to outpace sales growth.
