Danone: Strong start to the year, demonstrating the relevance of our health-oriented portfolio

2025 First Quarter Sales
Press release – Paris, April 23, 2025, at 7:30am CEST

Strong start to the year,
demonstrating the relevance of our health-oriented portfolio

Strong Q1 2025, with sales of €6,844m, up +4.3% on a like-for-like (LFL) basis Contributions from both volume/mix (+1.9%) and price (+2.4%); positive volume/mix again in all categories Broad-based growth, demonstrating the resilience of our business Very strong performance in China, North Asia & Oceania, in all categories Solid growth in North America, led by a continued, winning momentum in High Protein Consistent progress in Europe with solid volume/mix 2025 guidance confirmed, in line with mid-term ambition: LFL sales growth expected between +3% and +5%, with recurring operating income growing faster than sales

€ million except %	Q1 2024		Q1 2025		Reported change		LFL sales growth		Volume/mix growth
BY GEOGRAPHICAL ZONE
Europe	2,336		2,389		+2.3%		+2.0%		+1.9%
North America	1,737		1,633		-5.9%		+3.7%		+0.9%
China, North Asia & Oceania	840		936		+11.5%		+9.9%		+10.4%
Latin America	727		715		-1.6%		+9.0%		-2.1%
Rest of the World	1,150		1,170		+1.7%		+3.3%		-1.0%
BY CATEGORY
EDP	3,474		3,381		-2.7%		+3.7%		+1.5%
Specialized Nutrition	2,183		2,306		+5.7%		+5.3%		+3.1%
Waters	1,132		1,156		+2.2%		+4.1%		+1.0%
TOTAL	6,789		6,844		+0.8%		+4.3%		+1.9%

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Antoine de Saint-Affrique: CEO statement

With a +4.3% like-for-like sales growth in Q1, we have delivered a strong start to the year, across all categories, demonstrating the strength of our execution and the relevance of our health-focused portfolio. In the current uncertain environment, our science-based innovations, our consumer and patient-centric approach, and our increasingly diversified channel footprint further contribute to the resilience of our business. We are confident that 2025 will be another year where we deliver on our value creation model, aligned with our mid-term ambitions.

I. FIRST QUARTER SALES

In Q1 2025, sales stood at €6,844m, up +4.3% LFL, led by an increase of +1.9% in volume/mix and +2.4% in price. On a reported basis, sales increased by +0.8%, with a negative impact from scope (-3.0%), resulting predominantly from the sale of Horizon Organic and Wallaby completed in April 2024. Reported sales were also negatively impacted by forex (-0.8%), reflecting the depreciation of several currencies against the euro, notably the Mexican Peso, the Brazilian Real, the Argentine Peso and the Turkish Lira, while hyperinflation contributed positively to reported sales (+0.8%).

Sales by operating segment

In Q1 2025, Europe LFL sales were up +2.0%, driven by volume/mix at +1.9%, while price was flat. The zone improved its growth momentum sequentially while achieving positive volume/mix for the sixth consecutive quarter. It was notably led by further progress in EDP, supported by functional products, and particularly the YoPro, Alpro, and Actimel brands. Specialized Nutrition registered resilient growth, driven by Medical Nutrition, while Waters posted strong growth ahead of the summer season, notably led by evian, Volvic and Zywiec Zdroj brands.

In North America, LFL sales were up +3.7%, with volume/mix at +0.9% and price at +2.8%. This solid growth was led by the consistent winning momentum in High Protein products, under the Oikos brand. Coffee Creamers registered a soft start to the year, impacted by temporary service challenges, in a competitive category. Medical Nutrition posted strong growth across the portfolio, while evian and Harmless Harvest drove double-digit growth in Waters.

In China, North Asia & Oceania, LFL sales were up +9.9%, with strong volume/mix at +10.4% and price at -0.5%. In Specialized Nutrition, Infant Milk Formula continued to consistently gain market shares, with Essensis as a key driver, while Medical Nutrition saw continued strong demand. In Waters, Mizone delivered double-digit growth, while EDP in Japan sustained its strong performance with further market share gains.

In Latin America, LFL sales were up +9.0%, with volume/mix at -2.1% and price at +11.1%. Specialized Nutrition posted strong growth, led by the Aptamil brand across the region, while EDP registered solid growth, sustained by YoPro, Danone, and Danette brands.

In the Rest of the World, LFL sales increased by +3.3%, with volume/mix at -1.0% and price at +4.3%. The performance was led by the continued growth of EDP in Africa, especially in Morocco, and the solid growth of Specialized Nutrition, notably in India and Middle East, while Waters was impacted by adverse weather conditions.

Sales by geography by category

Q1 2025	Europe		North America		China, North Asia & Oceania		AMEA, CIS & Latin America		Total
	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)
EDP	1,103	+1.5%	1,459	+2.9%	95	+8.8%	725	+8.5%	3,381	+3.7%
Specialized Nutrition	799	+1.0%	97	+9.2%	665	+10.0%	745	+5.7%	2,306	+5.3%
Waters	487	+4.7%	77	+13.1%	176	+10.2%	415	-0.2%	1,156	+4.1%
Total Company	2,389	+2.0%	1,633	+3.7%	936	+9.9%	1,885	+5.3%	6,844	+4.3%

II. 2025 GUIDANCE

2025 guidance confirmed, in line with mid-term ambition: LFL sales growth expected between +3% and +5%, with recurring operating income growing faster than sales.

III. RECENT MAJOR DEVELOPMENTS

• March 14, 2025: Danone has completed its share buyback announced on February 26, 2025. 2.7 million shares have been bought back between March 3 and March 14, 2025, for a total amount of €192 million. The objective of this share buyback is to offset the dilutive impact resulting from the capital increases reserved to employees and the long-term incentive plans to be implemented in 2025.
  
  
• April 1, 2025: Danone successfully issued an €800 million bond with an 8-year maturity and a 3.438% coupon. The settlement took place on April 7, 2025, and the bonds are listed on Euronext Paris. The bond issue was widely subscribed by a diversified investor base, confirming the high confidence in Danone’s business model and credit profile.
  
  

IV. ALTERNATIVE PERFORMANCE MEASURES NOT DEFINED BY IFRS

IAS 29: impact on reported data

Danone has applied IAS 29 in hyperinflationary countries, as defined in IFRS. Adoption of IAS 29 in hyperinflationary countries requires their non-monetary assets and liabilities and their income statement to be restated to reflect the changes in the general purchasing power of their functional currency, leading to a gain or loss on the net monetary position, included in the net income. Moreover, their financial statements are converted into euros using the closing exchange rate of the relevant period.

IAS 29: impact on reported data	Q1 2025
Sales (€m)	-11.8
Sales growth (%)	-0.17%

Definitions of geographical zones

Europe refers to European countries.

North America refers to the United States and Canada.

China, North Asia & Oceania refers to China, Japan, Australia and New Zealand.

Latin America refers to Mexico, Brazil, Argentina and Uruguay.

Rest of the World refers to Asia, Middle East including Turkey, Africa and CIS.

Financial indicators not defined in IFRS

Due to rounding, the sum of values presented may differ from totals as reported. Such differences are not material.

Like-for-like changes in sales reflect Danone's organic performance and essentially exclude the impact of:

• changes in consolidation scope, with indicators related to a given fiscal year calculated on the basis of the previous year's scope;
• changes in applicable accounting principles;
• changes in exchange rates, with both previous-year and current-year indicators calculated using the same exchange rate (the exchange rate used is a projected annual rate determined by Danone for the current year and applied to both previous and current years).
  
  

Since January 1, 2023, all countries with hyperinflationary economies are taken into account in like-for-like changes as follows: sales growth in excess of around 26% per year (a three-year average at 26% would generally trigger the application of hyperinflationary accounting as defined in IFRS) is now excluded from the like-for-like sales growth calculation.

Bridge from like-for-like data to reported data

(€ million except %)	2024 sales	Like-for-like change	Impact of changes in scope of consolidation	Impact of changes in exchange rates & others incl. IAS 29	Contribution of hyperinflation	Reported change	2025 sales
Q1	6,789	+4.3%	-3.0%	-1.3%	+0.8%	+0.8%	6,844

Recurring operating income is defined as Danone’s operating income excluding Other operating income and expenses. Other operating income and expenses comprise items that, because of their significant or unusual nature, cannot be viewed as inherent to Danone’s recurring activity and have limited predictive value, thus distorting the assessment of its recurring operating performance and its evolution. These mainly include:

• capital gains and losses on disposals of businesses and fully consolidated companies;
• impairment charges on intangible assets with indefinite useful lives;
• costs related to strategic restructuring operations or transformation plans;
• costs related to major external growth transactions;
• costs related to crises and major disputes;
• in connection with IFRS 3 and IFRS 10, (i) acquisition costs related to acquisitions of companies resulting in control, (ii) revaluation gains or losses accounted for following a loss of control, and (iii) changes in earn-outs subsequent to acquisitions resulting in control.

Recurring operating margin is defined as the Recurring operating income over Sales ratio.

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FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward-looking statements by forward-looking words, such as "estimate”, "expect”, "anticipate”, "project”, "plan”, "intend”, "objective”, "believe”, "forecast”, "guidance”, "foresee”, "likely”, "may”, "should”, "goal”, "target”, "might”, "will”, "could”, "predict”, "continue”, "convinced” and "confident,” the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, predictions of future activities, operations, direction, performance and results of Danone.

Although Danone believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties, please refer to the "Risk Factor” section of Danone’s Universal Registration Document (the current version of which is available at www.danone.com).

Subject to regulatory requirements, Danone does not undertake to publicly update or revise any of these forward-looking statements. This document does not constitute an offer to sell, or a solicitation of an offer to buy Danone securities.

The presentation to analysts and investors will be broadcast live today from 8:15 a.m. (Paris time)
on Danone’s website (www.danone.com).
Related slides will also be available on the website in the Investors section.

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All references in this document to Like-for-like (LFL) changes, Recurring operating income and margin, correspond to alternative performance measures not defined by IFRS. Their definitions, as well as their reconciliation with financial statements, are listed on pages 3 and 4.

Attachment

• PR_Danone_Q1_2025