Danone (DN) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered solid like-for-like (LFL) sales growth of +2.7% year-over-year, with balanced performance across all categories and regions despite significant challenges such as Middle East conflict and IMF recalls in EMEA.

• Reported sales declined by 2.0% due to significant negative currency effects, particularly from euro appreciation.

• Transformation accelerated with the announced acquisition of Huel (premium functional nutrition, DTC expertise) and a joint venture for Argentinian dairy with Arcor, both expected to close in H2 2026 and be EPS accretive over time.

• Americas showed improved growth, led by Latin America and a recovering U.S. market; APAC saw strong gains in Specialized Nutrition and EDP.

Financial highlights

• Q1 2026 sales reached €6,708m, down from €6,844m in Q1 2025 on a reported basis.

• Like-for-like sales growth was +2.7%, driven by +1.5% from volume/mix and +1.2% from price.

• Reported sales declined by 2.0% due to negative forex impact (-5.6%), partially offset by scope (+0.5%) and hyperinflation (+0.3%).

• EMEA LFL sales grew 0.6%, Americas 3.4%, and APAC 6.0%.

• By category, EDP grew 3.4% LFL, Specialized Nutrition 1.9%, and Waters 2.3%.

Outlook and guidance

• 2026 guidance confirmed: like-for-like sales growth expected between +3% and +5%, with recurring operating income projected to grow faster than sales.

• Expect progressive normalization of IMF business and supply chains through the year.

• Monitoring commodity cost inflation; productivity initiatives accelerated to offset input cost pressures.