Danone Summary for Q3 2024 Growth Earnings:
Danone reported €6.83 billion in sales for Q3 2024 which is a 4.2% increase year over year. While price increased by 0.7%, volume and sales increased by 3.6% and 1.2% respectively. Reported sales, however, decreased due to currency shifts and deconsolidating Horizon Organic and Wallaby.
Regional Highlights
- North America: 5.8% growth due to increased demand of Coffee Creations and yogurt along with bottled water brands such as Evian.
- Europe: 1.4% growth due to YoPro and Actimel along with other plant based products.
- Asia, China, and Oceania: Leading region of growth with strong market demand for sustenance at 8.0%
- Latin America: 2.7% growth stunted by weather in Mexico and milk economics shift in Brazil.
- Rest Of The World: 6.0% growth mainly due to dairy innovations in Africa.
Category Highlights
- Waters: 3.2% growth due to the increase in demand for bottled water.
- Specialised Nutrition: 5.2% growth due to sales in medical nutrition and infant formulas.
- Essential dairy and plant based (EDP): 4.1% growth despite challenges in some markets.
2024 Guidance and Outlook on the Market
Danone’s target growth rate remains at 3% to 5% for 2024. It is expected that margins will improve because of greater operational efficiency and market concentrate. September’s bond issuance of €700 million allows for flexible investment spending while offering a 3.20% interest rate and 7-years to maturity.
Strategic Focus
Through prioritizing scientific innovations and consumer-focused product development in the “Renew Danone” strategy, Danone continues to strengthen its market position. The company continues to focus on long-term sustainable growth with operational excellence in the dairy, plant-based foods, and nutrition categories.
