Danone (DN) Q2 2025 earnings summary

Executive summary

• H1 2025 sales reached €13,737m, up 4.2% like-for-like, driven by volume/mix (+2.6%) and price (+1.7%), with a diversified, health-focused portfolio.

• Recurring operating margin rose by 49 bps to 13.2%, and recurring EPS increased 5.8% to €1.91, reflecting operational improvements.

• Free cash flow was €1,172m, matching last year's record, despite a 6.1% year-over-year decline due to higher capex and working capital.

• Portfolio strengthened by acquisitions in medical nutrition and biotics, including Kate Farms and The Akkermansia Company.

• 2025 guidance reaffirmed: like-for-like sales growth of 3–5% and recurring operating income to grow faster than sales.

Financial highlights

• H1 2025 sales reached €13.7bn, with like-for-like growth of 4.2% year-over-year; Q2 sales were €6,913m, up 4.1% LFL.

• Recurring operating income was €1,811m, with margin at 13.2% (+49 bps year-over-year).

• Recurring EPS was €1.91 (+5.8% year-over-year); reported EPS was €1.61 (-14.8% year-over-year).

• Free cash flow for H1 2025 was €1,172m; net debt increased to €9.1bn as of June 30, 2025.

• Net income (Group share) was €1,040m, down 14.7% year-over-year due to non-recurring items.

Outlook and guidance

• 2025 guidance reaffirmed: like-for-like sales growth of 3–5% and recurring operating income expected to outpace sales growth.

• Expect continued quality growth, moderate inflation, and solid productivity in H2, with potential for further margin expansion despite currency headwinds.