Danone (DN) Q4 2025 earnings summary

Executive summary

• Achieved 4.5% like-for-like sales growth in FY 2025, with broad-based gains across all regions and categories, driven by positive volume/mix and disciplined execution.

• Recurring operating margin improved by 44 basis points to 13.4%, with recurring EPS up 4.6% to €3.80, reflecting strong operational performance despite currency headwinds.

• Free cash flow reached €2.8 billion, supporting disciplined capital allocation and shareholder returns.

• Recognized for global sustainability leadership, including CDP Triple A and B Corp certification.

• Portfolio transformation included increased stake in Australian dairy JV, now consolidated.

Financial highlights

• FY 2025 sales: €27,283m, with reported growth stable due to significant negative currency impact; like-for-like sales growth of +4.5%.

• Recurring operating income: €3,665m; recurring net income group share: €2,461m; EBITDA: €4,295m.

• Free cash flow of €2.8 billion; dividend proposed at €2.25 per share, up 4.7%.

• ROIC improved to 10.7%, up 62 bps year-over-year.

• Working capital/sales ratio improved to -10.2%, best-in-class efficiency.

Outlook and guidance

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

• Q1 2026 expected to see a one-off impact of 0.5%-1% of net sales from infant milk formula recalls, mainly in Europe and Middle East.

• Confidence in normalization of supply and brand equity, with no major structural changes expected in regulation.