Danone successfully concluded its fiscal year 2024 with strong results. Sales reached €27.38 billion, representing a percentage change of 4.3% on a like-for-like basis. The volume and mix improved by 3.0%, and the price increased by 1.3%. Sales in the fourth quarter increased 4.7% on a like-for-like basis. The company continued to capture growth in key markets bucking the trend of the economic slowdown with robust consumption in North America, Europe and Asia.
The operating margin improved by 1.0 percentage points to 13.0%, driven by better efficiency as well as increased reinvestment in growth. Free cash flow increased by 14% from the previous year and reached €3.0 billion which is a record high. Recurring EPS also grew by 2.5% from an already high level to €3.63. The impressive results and a decline in non-recurring expenses contributed to a net income increase of more than what’s usual to a new level of €2.02 billion.
North America continues to be an important driver of growth. Sales of high-protein products, coffee, and waters performed well. In Europe, Danone has delivered five consecutive quarters of positive volume growth. The competitive position of the company was maintained for fresh dairy products. Demand across all categories remained strong in China, North Asia, and Oceania.
The company will approach 2025 with optimism. The target range for like-for-like sales growth is between 3% and 5%. Recurring operating income is expected to grow faster than revenue. While continuing to focus on long-term growth, Danone remains committed to achieving sustainable profitability.
