Danone (DN) Q2 2024 earnings summary

Executive summary

• Net sales for H1 2024 reached €13,757 million, up 4.0% like-for-like, with volume/mix up 2.1% and broad-based growth across all categories and geographies.

• Recurring operating margin improved by 45 bps to 12.69%, enabling reinvestment in growth initiatives and driven by operational productivity.

• Recurring EPS rose 2.6% to €1.80; free cash flow increased 11% to €1.2 billion, reflecting disciplined capital and working capital management.

• Strategic focus on high-protein, medical nutrition, coffee platforms, and continued transformation in core categories.

Financial highlights

• H1 2024 net sales: €13,757 million, up 4.0% like-for-like year-over-year.

• Recurring EPS up 2.6% to €1.80; reported net income group share increased by €126 million to €1,219 million.

• Operating income rose 7.9% to €1,814 million; operating margin up 132 bps to 13.2%.

• Free cash flow grew 11% to €1.2 billion.

• Reported sales declined 2.9% due to negative scope and forex, partially offset by hyperinflation adjustments.

Outlook and guidance

• 2024 guidance confirmed: like-for-like sales growth expected between 3% and 5%, with moderate improvement in recurring operating margin.

• Pricing expected to remain positive in H2, with most negotiations completed and visibility on pricing for the remainder of the year.

• Mid-term (2025-2028) targets: like-for-like net sales growth of 3%-5% and recurring operating income to outpace sales, aiming for structurally double-digit ROIC and €3 billion free cash flow.