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

Core Insights - The company reported a strong start to 2025 with a +4.3% like-for-like (LFL) sales growth in Q1, driven by a +1.9% increase in volume/mix and a +2.4% increase in price [3][4] - The health-oriented portfolio has proven relevant in the current uncertain environment, contributing to the resilience of the business [3][4] - The company confirmed its 2025 guidance, expecting LFL sales growth between +3% and +5%, with recurring operating income anticipated to grow faster than sales [4][13] Sales Performance by Geography - In Europe, Q1 2025 LFL sales increased by +2.0%, supported by a +1.9% growth in volume/mix, with positive momentum for six consecutive quarters [6] - North America saw LFL sales growth of +3.7%, led by High Protein products, while Medical Nutrition also performed strongly [7] - China, North Asia & Oceania experienced significant growth with LFL sales up +9.9%, driven by strong demand in Specialized Nutrition and Waters [8] - Latin America reported LFL sales growth of +9.0%, primarily due to price increases, despite a decline in volume/mix [9] - The Rest of the World achieved LFL sales growth of +3.3%, with notable performance in Africa and Specialized Nutrition [10] Sales Performance by Category - The total sales for the company in Q1 2025 reached €6,844 million, with EDP (Essential Dairy Products) sales declining by -2.7% while Specialized Nutrition grew by +5.7% [4][11] - Waters category sales increased by +2.2%, benefiting from strong brand performances ahead of the summer season [6][11] Recent Developments - The company completed a share buyback of 2.7 million shares for a total of €192 million to offset dilution from capital increases [14][15] - A successful bond issuance of €800 million with an 8-year maturity and a 3.438% coupon was completed, reflecting strong investor confidence in the company's business model [15]