France's Danone H1 sales rise 3.5% LFL on high-protein products demand

Danone SA

29/07/2026 06:41

Overview
France dairy and nutrition group's H1 sales grew 3.5% LFL, recurring EPS up 0.9%
Recurring operating margin rose to 13.3%, supported by productivity gains amid inflation
Company confirmed 2026 guidance and highlighted recent APAC acquisitions

Outlook
Danone confirms 2026 guidance for LFL sales growth between +3% and +5%
Company expects recurring operating income to grow faster than sales in 2026
Danone says environment remains unstable but enters H2 with confidence in 2026 delivery

Result Drivers
HEALTH-FOCUSED DEMAND - Co said strong demand for high-protein, medical nutrition, and plant-based products supported growth across regions
PRODUCTIVITY GAINS - Productivity improvements helped lift recurring operating margin despite inflationary pressure
CATEGORY RECOVERY - Co cited progressive recovery in Specialized Nutrition in EMEA and improved trends in North America dairy

Company press release: ID:nGNE4LbrRZ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Sales
 
EUR 13.94 bln
 
H1 EPS
 
EUR 1.81
 
H1 Free Cash Flow
 
EUR 852 mln
 
H1 Recurring Operating Income
 
EUR 1.85 bln
 
H1 Recurring Operating Margin
 
13.3%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the food processing peer group is "buy"
Wall Street's median 12-month price target for Danone SA is €79.50, about 10% above its July 28 closing price of €72.24
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads
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July 27 - Chobani fails to end Dannon parent Danone's cold-brew coffee lawsuit

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)