Danone Reports Solid Q3 2024 Results
Danone has announced strong results for the Q3 2024, reflecting a robust performance across several markets. The company reported consolidated sales of €6.83 billion, representing a 4.2% growth on a like-for-like basis. This growth was driven by a 3.6% increase in volume and a 0.7% rise in price. However, reported sales declined by 1.2%, impacted by unfavorable foreign exchange rates and the deconsolidation of Horizon Organic and Wallaby brands.
Danone’s Q3 Performance by Region
North America delivered impressive like-for-like sales growth of 5.8%, supported by strong demand for Coffee Creations, yogurt, and bottled water brands like Evian. The company’s North American segment achieved significant volume growth, compensating for moderate price adjustments.
Europe also contributed to the company’s growth, with a 1.4% increase in like-for-like sales. The performance was fueled by gains in plant-based products and health-oriented offerings such as YoPro and Actimel. Meanwhile, Asia, China, and Oceania recorded the highest growth, with sales increasing by 8.0% on a like-for-like basis.
Latin America, however, faced challenges due to unfavorable weather in Mexico and strategic changes in Brazil’s milk business, limiting growth to 2.7%. The “Rest of the World” segment showed resilience, with sales growing 6.0%, led by a transformation in Africa’s dairy portfolio.
Category-wise Growth Highlights
Danone’s Waters segment demonstrated consistent growth, rising by 3.2%. The company credited this increase to solid demand for bottled water and successful brand performance across various regions. Specialized Nutrition performed well with a 5.2% rise, thanks to strong sales of medical nutrition products and infant milk formula. Essential Dairy and Plant-based (EDP) products grew by 4.1%, continuing to perform despite headwinds in some markets.
CEO Antoine de Saint-Affrique remarked, “Our Q3 results reflect Danone’s ability to deliver steady growth across categories. With innovations like high-protein products and expanding market share in medical nutrition, we are confident in our strategy.”
Market Outlook and 2024 Guidance
Danone has maintained its full-year 2024 guidance, projecting like-for-like sales growth between 3% and 5%. The company also anticipates a gradual improvement in recurring operating margins, driven by enhanced operational efficiency and a focus on core markets.
In line with these expectations, Danone raised €700 million through a bond issuance in September, providing additional financial flexibility for future investments. The bond carries a 3.20% coupon with a 7-year maturity, enhancing the company’s ability to fund strategic initiatives.
Strategic Developments and Future Plans
Danone emphasized that it remains committed to expanding its presence in key markets. Through the “Renew Danone” strategy, the company aims to sustain growth by focusing on science-backed innovations and consumer-driven products. By leveraging its strengths across dairy, plant-based, and nutrition categories, Danone aims to enhance competitiveness while maintaining sustainable growth.
The company’s success in Q3 2024 reflects its ability to adapt to market demands and execute its strategic vision. Danone’s leadership continues to prioritize operational excellence, sustainability, and financial discipline to meet evolving market challenges.
Conclusion
Danone’s Q3 2024 results demonstrate the company’s resilience and growth across multiple regions and product categories. As it progresses through the remainder of 2024, Danone’s focus remains on innovation, sustainability, and expanding market share globally. These strategic moves are expected to position the company for long-term success, reinforcing confidence in its future performance.
