Danone (DN) Q2 2025 earnings summary

Executive summary

• H1 2025 sales reached €13,737 million, up 4.2% like-for-like, with volume/mix up 2.6% and price up 1.7%.

• Recurring operating margin increased by 49 bps to 13.2%, and recurring EPS rose 5.8% to €1.91.

• Free cash flow was €1,172 million, stable year-over-year.

• Portfolio strengthened by acquisitions in medical nutrition and biotics, including Kate Farms and The Akkermansia Company.

• 2025 guidance reaffirmed: like-for-like sales growth of 3–5% and recurring operating income to grow faster than sales.

Financial highlights

• H1 2025 sales reached €13.7bn, with like-for-like growth of 4.2% year-over-year.

• Recurring operating income was €1,811 million, with margin at 13.2%.

• Recurring net income (Group share) was €1,231 million; recurring EPS at €1.91.

• Free cash flow for H1 2025 was €1,172 million, down 6.1% year-over-year due to higher capex and working capital.

• Net debt increased to €9.1bn as of June 30, 2025.

Outlook and guidance

• Confident in achieving full-year 2025 guidance of 3–5% like-for-like sales growth and recurring operating income growing faster than sales.

• Expect continued quality growth, moderate inflation, and solid productivity in H2, with potential for further margin expansion despite currency headwinds.