Newscasts - Food group Danone confident about 2026 after China drives 2025 sales

Danone SA

20/02/2026 10:58

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Source: 'Reuters - Business videos'

Description: French food group Danone said it was starting 2026 with confidence after it delivered 2025 sales and cash above analysts' expectations, helped by baby food demand in China, and improved its profit margin thanks to cost cuts. Ciara Lee reports.

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Video Transcript:

French food group Danone said it was starting 2026 with confidence. That's after it delivered 2025 sales and cash above analysts' expectations. It was helped by baby food demand in China and improved its profit margin thanks to cost cuts. Danone, like rival Nestle, faces investor pressure to spell out the financial impact of infant formula recalls tied to a contamination scare with the toxin cereulide. It said at this stage, the impact was "not material". The consumer goods giant reported 2025 sales of $32.07 billion, a like-for-like rise of 4.5%, slightly ahead of analyst projections. The performance reflected sustained demand for medical nutrition and baby food in China, which largely offset weakness in coffee creamers in a competitive US market. For 2026, Danone said its forecast was in line with its mid-term ambition of like-for-like sales growth of 3% to 5%. Danone, like rivals Unilever and Nestle, has slowed price hikes after three years of steep increases. It's trying to win back shoppers who had turned to cheaper brands during a surge in inflation. Investors have been focusing in recent weeks on the potential risk to sales following the infant formula recalls. While Danone's recall appears to be limited so far to Europe and excludes the Chinese market, analysts worry about a risk of reputational damage.