Danone: Strong FY 2024 results; Entering the next chapter of Renew with confidence

Rhea-AI Summary

Danone (DANOY) reported strong FY 2024 results with like-for-like sales growth of +4.3%, driven by +3.0% volume/mix and +1.3% price increases. Q4 2024 sales reached €6,716m, up +4.7% like-for-like.

The company's recurring operating margin improved to 13.0%, up 39 basis points from last year, supported by strong productivity levels. Free cash flow increased to €3,003 million, while net debt decreased significantly to €8.6 billion from €10.2 billion.

Notable developments include:

• Recurring EPS increased by +2.5% to €3.63
• Proposed dividend of €2.15 per share, up +2.4% year-over-year
• Announced share buyback program of 2.7 million shares for 2025
• 2025 guidance: like-for-like sales growth between +3% and +5%

Positive

• Like-for-like sales growth +4.3% in FY 2024
• Operating margin improved by 39 basis points to 13.0%
• Free cash flow increased to €3,003M from €2,633M
• Net debt reduced by €1.6B to €8.6B
• Strong Q4 performance with +4.7% like-for-like growth
• Recurring EPS up +2.5% to €3.63

Negative

• Reported sales decreased -0.9% due to scope changes and forex impact
• Price growth slowed to +1.3% from previous levels
• -€179M in non-recurring operating expenses

2024 Full-Year Results
Press release – Paris, February 26, 2025

Strong FY 2024 results
Entering the next chapter of Renew with confidence

FY 2024 sales of €27,376m up +4.3% on a like-for-like (LFL) basis, with volume/mix up +3.0%, and price up +1.3% Q4 sales up +4.7% LFL, with strong volume/mix of +4.2%, and resilient price of +0.6% Continued strong momentum in North America, notably in High Protein, Coffee Creations and Waters 5th consecutive quarter of positive volume/mix in Europe, demonstrating notably further progress in EDP competitiveness Sustained competitive growth in China, North Asia & Oceania in all categories Recurring operating margin up +39 bps at 13.0% driven by strong improvement in margin from operations, while consistently reinvesting into future growth Recurring EPS up +2.5% to €3.63 Record level of Free cash flow at €3.0bn, up +14.0% Proposed dividend up +2.4% to €2.15 2025 guidance in line with mid-term ambition: like-for-like sales growth expected between +3% and +5%, with recurring operating income growing faster than sales

Full-Year 2024 Key Figures

in millions of euros unless stated otherwise	FY 2023	FY 2024	Reported change	Like-for-like change (LFL)
Sales	27,619	27,376	-0.9%	+4.3%
Recurring operating income	3,481	3,558	+2.2%
Recurring operating margin	12.6%	13.0%	+39 bps
Non-recurring operating income and expenses	(1,438)	(179)	+1,259
Operating income	2,042	3,379	+65.4%
Operating margin	7.4%	12.3%	+495 bps
Recurring net income – Group share	2,283	2,345	+2.7%
Non-recurring net income – Group share	(1,402)	(324)	+1,078
Net income – Group share	881	2,021	+129.4%
Recurring diluted EPS (€)	3.54	3.63	+2.5%
EPS (€)	1.36	3.13	+130.2%
Cash flow from operating activities	3,442	3,831	+11.3%
Free cash flow	2,633	3,003	+14.0%

¹

Antoine de Saint-Affrique: CEO statement

We close the first chapter of Renew Danone with a strong set of results, fully delivering on our 2022 mid-term guidance. In 2024, the quality of our growth has further improved, reaching +4.3% like-for-like sales growth driven by +3% volume/mix.

This allowed us to drive operating leverage, enabling us to further reinvest in our brands and capabilities, and support the growth of our categories while maintaining a strong financial discipline. Our focus on value creation and return-oriented capital allocation led to a significant improvement of our ROIC, now back into double-digit territory.

We believe that the food industry is at a tipping point. Our unique, health-driven portfolio, our renewed focus on science to the service of consumers and patients, our strong brand portfolio and a continuous improvement mindset give us the confidence that we can seize this long-term market opportunity. We enter the next chapter as a stronger company, ready for more.

I. FOURTH QUARTER AND FULL-YEAR RESULTS

Fourth quarter and full-year sales

In Q4 2024, sales stood at €6,716m, up +4.7% on a like-for-like basis, led by an increase of +4.2% from volume/mix and +0.6% from price. On a reported basis, sales increased by +0.9%, notably due to the negative impact from scope (-3.8%), resulting predominantly from the sale of Horizon Organic and Wallaby. Reported sales were also negatively impacted by forex (-2.3%), reflecting the depreciation of several currencies against the euro, notably the Argentine Peso, the Mexican Peso, the Brazilian Real and the Turkish Lira. In addition, hyperinflation contributed positively to reported sales (+1.8%).

In 2024, sales stood at €27,376m, up +4.3% on a like-for-like basis, led by an increase of +3.0% from volume/mix and +1.3% from price. On a reported basis, sales decreased by -0.9%, notably due to the negative impact from scope (-4.8%), resulting predominantly from the exit of EDP Russia and Horizon Organic and Wallaby. Reported sales were also negatively impacted by forex (-2.8%), while hyperinflation contributed positively (+1.6%).

Sales by operating segment

€ million except %

Q4 2023

Q4 2024

Reported change

LFL sales growth

Volume/mix growth

FY 2023

FY 2024

Reported change

LFL sales growth

Volume/mix growth

BY GEOGRAPHICAL ZONE

Europe

2,313

2,358

+2.0%

+1.8%

+3.0%

9,382

9,568

+2.0%

+1.7%

+1.4%

North America

1,725

1,636

-5.2%

+7.7%

+5.9%

6,889

6,579

-4.5%

+5.2%

+4.1%

China, North Asia & Oceania

822

886

+7.8%

+6.8%

+9.8%

3,496

3,694

+5.7%

+8.0%

+9.1%

Latin America

704

724

+2.9%

+4.7%

+1.2%

2,794

3,029

+8.4%

+4.2%

+0.0%

Rest of the World

1,092

1,112

+1.8%

+5.4%

+1.7%

5,058

4,506

-10.9%

+5.7%

+1.4%

BY CATEGORY

EDP

3,462

3,355

-3.1%

+4.7%

+3.8%

14,322

13,463

-6.0%

+3.8%

+2.7%

Specialized Nutrition

2,174

2,308

+6.1%

+4.6%

+5.3%

8,504

8,936

+5.1%

+4.6%

+3.4%

Waters

1,019

1,053

+3.3%

+5.3%

+3.0%

4,793

4,977

+3.8%

+5.1%

+2.9%

TOTAL

6,655

6,716

+0.9%

+4.7%

+4.2%

27,619

27,376

-0.9%

+4.3%

+3.0%

In Q4 2024, Europe sales were up +1.8% on a like-for-like basis, with volume/mix at +3.0% and price at -1.2%. The zone registered its fifth consecutive quarter of positive volume/mix, making step-by-step progress in EDP competitiveness. Specialized Nutrition posted solid performance, while Waters delivered strong growth, driven by evian, Volvic and Zywiec Zdroj brands.

In North America, sales were up +7.7% on a like-for-like basis, led by strong volume/mix, up +5.9%, and resilient price, up +1.9%. This performance was driven by the continued strong momentum in High Protein, Coffee Creations and Waters, as well as solid growth in Specialized Nutrition, led by Medical.

In China, North Asia & Oceania sales were up +6.8% on a like-for-like basis, with strong volume/mix at +9.8% and price at -3.0%. In Specialized Nutrition, Infant Milk Formula continued to gain further market share, in an improving category, while Medical Nutrition maintained its strong momentum. In Waters, Mizone delivered another quarter of strong growth, while EDP sustained its strong performance in Japan.

In Latin America, sales were up +4.7% on a like-for-like basis, with volume/mix up +1.2% and price up +3.5%. In EDP, the growth was still impacted by the licensing out of milk business in Brazil, while Danone, Danette and YoPro brands delivered a robust performance. Specialized Nutrition delivered strong growth, led by Aptamil, while Waters benefited from normalized weather conditions.

In the Rest of the World, sales increased by +5.4% on a like-for-like basis, with volume/mix up +1.7% and price up +3.7%, notably led by the solid performance of Specialized Nutrition and Waters across the region. In EDP, Dairy Africa showed further progress, with another quarter of strong growth in Morocco.

Sales by geography by category

Q4 2024	Europe		North America		China, North Asia & Oceania		AMEA, CIS & Latin America		Total
	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)
EDP	1,075	+0.0%	1,474	+7.8%	95	+8.2%	712	+5.2%	3,355	+4.7%
Specialized Nutrition	819	+2.0%	89	+3.2%	700	+6.6%	699	+6.1%	2,308	+4.6%
Waters	464	+5.6%	73	+12.3%	91	+7.2%	424	+3.5%	1,053	+5.3%
Total Company	2,358	+1.8%	1,636	+7.7%	886	+6.8%	1,836	+5.1%	6,716	+4.7%

FY 2024	Europe		North America		China, North Asia & Oceania		AMEA, CIS & Latin America		Total
	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)	Sales (€m)	LFL sales growth (%)
EDP	4,318	+0.9%	5,922	+5.4%	372	+11.6%	2,850	+3.8%	13,463	+3.8%
Specialized Nutrition	3,154	+1.4%	353	-3.0%	2,557	+6.3%	2,873	+7.9%	8,936	+4.6%
Waters	2,096	+3.6%	304	+10.9%	764	+12.2%	1,813	+3.0%	4,977	+5.1%
Total Company	9,568	+1.7%	6,579	+5.2%	3,694	+8.0%	7,536	+5.1%	27,376	+4.3%

Recurring Operating Margin

Recurring operating income (€m) and margin (%)	FY 2023						FY 2024						Reported change
	€m			Margin (%)			€m			Margin (%)
BY GEOGRAPHICAL ZONE
Europe	1,076			11.5%			1,143			11.9%			+48 bps
North America	699			10.1%			749			11.4%			+124 bps
China, North Asia & Oceania	1,052			30.1%			1,086			29.4%			-70 bps
Latin America	123			4.4%			113			3.7%			-68 bps
Rest of the World	530			10.5%			468			10.4%			-11 bps
BY CATEGORY
EDP	1,224		8.5%			1,142			8.5%			-6 bps
Specialized Nutrition	1,772		20.8%			1,842			20.6%			-22 bps
Waters	485		10.1%			574			11.5%			+142 bps
Total	3,481		12.6%			3,558			13.0%			+39 bps

Danone’s recurring operating income reached €3,558m in 2024. Recurring operating margin stood at 13.0%, up +39 basis points (bps) compared to last year. This increase was mainly led by the strong improvement in margin from operations (+242 bps), notably driven by record productivity levels. Danone continued to step-up its reinvestments in A&P, product superiority and capabilities, which accounted for -173 bps. Finally, Overheads before reinvestments had a negative effect of -18 bps, while other effects had a combined impact of -12 bps, mainly due to a negative impact from Forex.

Net income and Earnings per share

	FY 2023				FY 2024
in millions of euros unless stated otherwise	Recurring	Non-recurring	Total		Recurring	Non-recurring	Total
Operating income	3,481	(1,438)	2,042		3,558	(179)	3,379
Cost of net financial debt	(172)		(172)		(197)		(197)
Other financial income and expense	(135)	(49)	(185)		(108)	(75)	(183)
Income before tax	3,173	(1,487)	1,686		3,253	(254)	2,999
Income tax	(864)	95	(768)		(888)	(41)	(929)
Effective tax rate	27.2%		45.6%		27.3%		31.0%
Net income from fully consolidated companies	2,309	(1,392)	917		2,365	(295)	2,070
Share of profit (loss) of equity-accounted companies	55	(19)	36		76	(46)	30
Net income	2,364	(1,411)	953		2,441	(340)	2,100
• Group share	2,283	(1,402)	881		2,345	(324)	2,021
• Non-controlling interests	81	(9)	72		96	(17)	79
Diluted EPS (€)	3.54		1.36		3.63		3.13

Recurring EPS increased by +2.5% to €3.63, driven by higher recurring operating income and a good management of financial costs.

Non-recurring operating income and expense reached -€179 million in 2024, including one-off costs related to transformation projects, mainly in Europe and the United States. This compares to -€1,438 million in 2023, which reflected the deconsolidation of EDP Russia and the impairment resulting from the disposal of Horizon Organic and Wallaby in the US. As a result, Reported EPS stood at €3.13, up +130.2%.

Cash flow and Debt

Free cash flow reached €3,003 million in 2024, up from €2,633 million in 2023, reflecting the increase in recurring operating income, as well as a strong improvement in working capital, now reaching -8.5% of sales. Capex stood at -€923 million.

As of December 31, 2024, Danone’s net debt stood at €8.6 billion, decreasing significantly from €10.2 billion last year, reflecting mainly the strong free cash flow generation.

Dividend

At the Annual Shareholders’ Meeting on April 24, 2025, Danone’s Board of Directors will propose a dividend of €2.15 per share in respect of the 2024 fiscal year, up +2.4% compared to previous year. Assuming this proposal is approved, the ex-dividend date will be May 3, 2025, and the dividend will be payable on May 7, 2025.

II. 2025 GUIDANCE

2025 guidance in line with mid-term ambition: like-for-like sales growth expected between +3% and +5%, with recurring operating income growing faster than sales.

III. SHARE BUYBACK

Danone intends to buy back 2.7 million of shares, in one or more tranches in 2025, in order to offset the dilutive impacts resulting from the capital increases reserved to employees and the long-term incentive plans to be implemented in 2025. The repurchased shares will be allocated to employee shareholding plans. Details of the share buyback program are available in section 7.2 of Danone’s 2023 Universal Registration Document, available on Danone’s website.

IV. RECENT MAJOR DEVELOPMENTS

• November 8, 2024: Danone has been awarded #1 position in the 2024 Global Access To Nutrition index (ATNi), which assesses the world’s 30 largest food and beverage manufacturers. This award highlights Danone’s dedication to promoting health and nutrition for consumers and patients.
  
  
• February 21, 2025: Following the mediation process ordered by the Judicial Court of Paris before which three NGOs had brought legal proceedings against Danone on January 9, 2023, an agreement between the parties has been reached to end the proceedings concerning Danone’s vigilance plan. This agreement involves reinforcing the vigilance plan, which now gives a more detailed description of the consequences of the use of plastic packaging and sets out in detail all the actions that Danone is implementing in this respect.
  
  

V. SHAREHOLDERS’ MEETING AND FINANCIAL STATEMENTS

At its meeting on February 25, 2025, the Board of Directors approved the draft resolutions that will be submitted to the approval of the Shareholders’ Meeting on April 24, 2025. In particular, the Board proposes that shareholders renew the term of office of Antoine de Saint-Affrique, Patrice Louvet, Géraldine Picaud and Susan Roberts as Directors, whose current term of office will expire on the next Shareholders’ Meeting. It will also submit to the Shareholder’s Meeting resolutions notably on the compensation of corporate officers, and on the renewal of the existing financial authorizations.

At its meeting on February 25, 2025, the Board of Directors approved the statutory and consolidated financial statements for the 2024 fiscal year. Regarding the audit process, as of today, the statutory auditors have substantially completed their examination of financial statements and verification of the sustainability information.

VI. ALTERNATIVE PERFORMANCE MEASURES NOT DEFINED BY IFRS

IAS 29: impact on reported data

Danone has applied IAS 29 in hyperinflationary countries, as defined in IFRS. Adoption of IAS 29 in hyperinflationary countries requires their non-monetary assets and liabilities and their income statement to be restated to reflect the changes in the general purchasing power of their functional currency, leading to a gain or loss on the net monetary position, included in the net income. Moreover, their financial statements are converted into euros using the closing exchange rate of the relevant period.

IAS 29: impact on reported data € million except %	Q4 2024		FY 2024
Sales	3.8		126.1
Sales growth (%)	0.06%		0.46%
Recurring Operating Income			-68
Recurring Net Income – Group share			-114

Breakdown by quarter of FY 2024 sales after application of IAS 29
FY 2024 sales correspond to the addition of:

• Q4 2024 reported sales;
• Q1, Q2 and Q3 2024 sales resulting from the application of IAS 29 until December 31, 2024, to sales of entities in hyperinflationary countries (application of the inflation rate until December 31, 2024, and translation into euros using the December 31, 2024, closing rate) and provided in the table below for information (unaudited data)

€ million	Q1 20241	Q2 20242	Q3 20243	Q4 2024	FY 2024
Europe	2,336	2,447	2,427	2,358	9,568
North America	1,737	1,594	1,611	1,636	6,579
China, North Asia & Oceania	840	1,001	967	886	3,694
Latin America	761	825	720	724	3,029
Rest of the World	1,172	1,093	1,130	1,112	4,506
Total	6,846	6,960	6,855	6,716	27,376

¹Results from the application of IAS 29 until December 31, 2024, to Q1 sales of entities of hyperinflationary countries.
²Results from the application of IAS 29 until December 31, 2024, to Q2 sales of entities of hyperinflationary countries.
³Results from the application of IAS 29 until December 31, 2024, to Q3 sales of entities of hyperinflationary countries.

Definitions of geographical zones

Europe refers to European countries.

North America refers to the United States and Canada.

China, North Asia & Oceania refers to China, Japan, Australia and New Zealand.

Latin America refers to Mexico, Brazil, Argentina and Uruguay.

Rest of the World refers to Asia, Middle East including Turkey, Africa and CIS.

Financial indicators not defined in IFRS

Due to rounding, the sum of values presented may differ from totals as reported. Such differences are not material.

Like-for-like changes in sales reflect Danone's organic performance and essentially exclude the impact of:

• changes in consolidation scope, with indicators related to a given fiscal year calculated on the basis of the previous year's scope;
• changes in applicable accounting principles;
• changes in exchange rates, with both previous-year and current-year indicators calculated using the same exchange rate (the exchange rate used is a projected annual rate determined by Danone for the current year and applied to both previous and current years).
  
  

Since January 1, 2023, all countries with hyperinflationary economies are taken into account in like-for-like changes as follows: sales growth in excess of around 26% per year (a three-year average at 26% would generally trigger the application of hyperinflationary accounting as defined in IFRS) is now excluded from the like-for-like sales growth calculation.

Bridge from like-for-like data to reported data

(€ million except %)	2023 sales	Like-for-like change	Impact of changes in scope of consolidation	Impact of changes in exchange rates & others incl. IAS 29	Contribution of hyperinflation	Reported change	2024 sales
Q4	6,655	+4.7%	-3.8%	-1.8%	+1.8%	+0.9%	6,716
FY	27,619	+4.3%	-4.8%	-1.9%	+1.6%	-0.9%	27,376

Margin from operations is defined as the Gross margin over Sales ratio, where Gross margin corresponds to the difference between Sales and Industrial costs excluding reengineering initiatives and Logistics / Transportation costs.

Recurring operating income is defined as Danone’s operating income excluding Other operating income and expenses. Other operating income and expenses comprise items that, because of their significant or unusual nature, cannot be viewed as inherent to Danone’s recurring activity and have limited predictive value, thus distorting the assessment of its recurring operating performance and its evolution. These mainly include:

• capital gains and losses on disposals of businesses and fully consolidated companies;
• impairment charges on intangible assets with indefinite useful lives;
• costs related to strategic restructuring operations or transformation plans;
• costs related to major external growth transactions;
• costs related to crises and major disputes;
• in connection with IFRS 3 and IFRS 10, (i) acquisition costs related to acquisitions of companies resulting in control, (ii) revaluation gains or losses accounted for following a loss of control, and (iii) changes in earn-outs subsequent to acquisitions resulting in control.

Recurring operating margin is defined as the Recurring operating income over Sales ratio.

Other non-recurring financial income and expense corresponds to financial income and expense items that, in view of their significant or unusual nature, cannot be considered as inherent to Danone’s recurring financial management. These notably include changes in the value of non-consolidated interests and profits or losses on the net monetary position.

Non-recurring income tax corresponds to income tax on non-recurring items as well as tax income and expense items that, in view of their significant or unusual nature, cannot be considered as inherent to Danone’s recurring performance.

Recurring effective tax rate measures the effective tax rate of Danone’s recurring performance and is computed as the ratio of income tax related to recurring items over recurring net income before tax.

Non-recurring share of profit (loss) of equity-accounted companies includes items that, because of their significant or unusual nature, cannot be viewed as inherent to the companies' recurring activity and thereby distort the assessment of their recurring performance and trends in that performance. These items mainly relate to:

• capital gains and losses on disposals of Investments in equity-accounted companies;
• impairment of investments in equity-accounted companies;
• non-recurring items, as defined by Danone, included in the share of profit (loss) of equity-accounted companies.
  
  

Recurring net income (or Recurring net income – Group Share) corresponds to the Group share of the consolidated Recurring net income. The Recurring net income excludes items that, because of their significant or unusual nature, cannot be viewed as inherent to Danone’s recurring activity and have limited predictive value, thus distorting the assessment of its recurring performance and its evolution. Such non-recurring income and expenses correspond to Other operating income and expenses, Other non-recurring financial income and expenses, Non-recurring income tax, and Non-recurring share of profit (loss) of equity-accounted companies. These items, excluded from Net income, represent Non-recurring net income.

Recurring EPS (or Recurring net income – Group Share, per share after dilution) is defined as the ratio of Recurring net income adjusted for hybrid financing over Diluted number of shares. In compliance with IFRS, income used to calculate EPS is adjusted for the coupon related to the hybrid financing accrued for the period and presented net of tax.

	FY 2023				FY 2024
	Recurring		Total		Recurring		Total
Net income-Group share (€ million)	2,283		881		2,345		2,021
Coupon related to hybrid financing net of tax (€ million)	(8)		(8)		(4)		(4)
Number of shares
• Before dilution	641,030,818		641,030,818		643,283,916		643,283,916
• After dilution	641,738,674		641,738,674		644,436,743		644,436,743
EPS (€)
• Before dilution	3.55		1.36		3.64		3.14
• After dilution	3.54		1.36		3.63		3.13

Free cash flow represents cash flows provided or used by operating activities less capital expenditure net of disposals and, in connection with IFRS 3, excluding (i) acquisition costs related to acquisitions of companies resulting in control, and (ii) earn-outs related to acquisitions of companies resulting in control and paid subsequently to acquisition date.

(€ million)	FY 2023	FY 2024
Cash flows provided by operating activities	3,442	3,831
Capital expenditure	(847)	(923)
Disposal of property, plant and equipment and acquisition costs related to acquisitions of companies resulting in control1	38	95
Free cash flow	2,633	3,003

¹ Represents acquisition costs related to acquisitions of companies resulting in control that were paid during the period

Net financial debt represents the net debt portion bearing interest. It corresponds to current and non-current financial debt (i) excluding Liabilities related to put options granted to non-controlling interests and earn-outs on acquisitions resulting in control and (ii) net of Cash and cash equivalents, Short term investments and Derivatives – assets managing net debt.

(€ million)	December 31, 2023	December 31, 2024
Non-current financial debt	10,739	10,175
Current financial debt	4,270	3,799
Short-term investments	(3,638)	(4,685)
Cash	(2,363)	(1,475)
Bank Overdraft	1,264	828
Derivatives — non-current assets1	(34)	(3)
Derivatives — current-assets1	(16)	(37)
Net debt	10,221	8,601
Liabilities related to put options granted to non-controlling interests — non-current	-	-
Liabilities related to put options granted to non-controlling interests and earn-outs on acquisitions resulting in control — current	(356)	(317)
Net financial debt	9,865	8,285

¹ Managing net debt only

ROIC is the ratio of net operating income in the current year to average capital invested in the current and prior years).

o o O o o

FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward-looking statements by forward-looking words, such as “estimate”, “expect”, “anticipate”, “project”, “plan”, “intend”, “objective”, “believe”, “forecast”, “guidance”, “foresee”, “likely”, “may”, “should”, “goal”, “target”, “might”, “will”, “could”, “predict”, “continue”, “convinced” and “confident,” the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, predictions of future activities, operations, direction, performance and results of Danone.

Although Danone believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties, please refer to the “Risk Factor” section of Danone’s Universal Registration Document (the current version of which is available at www.danone.com).

Subject to regulatory requirements, Danone does not undertake to publicly update or revise any of these forward-looking statements. This document does not constitute an offer to sell, or a solicitation of an offer to buy Danone securities.

The presentation to analysts and investors will be broadcast live today from 8:00 a.m. (Paris time)
on Danone’s website (www.danone.com).
Related slides will also be available on the website in the Investors section.

APPENDIX – Sales by geographical zone and by category (in € million)

	Q1				Q2				Q3				Q4			FY
	2023		2024		2023		2024		2023		2024		2023	2024		2023	2024
BY GEOGRAPHICAL ZONE
Europe	2,248		2,336		2,429		2,447		2,392		2,427		2,313	2,358		9,382	9,568
North America	1,714		1,737		1,704		1,595		1,747		1,611		1,725	1,636		6,889	6,579
China, North Asia & Oceania	824		840		954		1,001		896		967		822	886		3,496	3,694
Latin America	689		727		779		810		771		706		704	724		2,794	3,029
Rest of the World	1,486		1,150		1,369		1,084		1,100		1,115		1,092	1,112		5,058	4,506
BY CATEGORY
EDP	3,768		3,474		3,731		3,298		3,474		3,283		3,462	3,355		14,322	13,463
Specialized Nutrition	2,143		2,183		2,142		2,213		2,070		2,189		2,174	2,308		8,504	8,936
Waters	1,051		1,132		1,362		1,426		1,362		1,354		1,019	1,053		4,793	4,977
TOTAL	6,962		6,789		7,235		6,938		6,906		6,826		6,655	6,716		27,619	27,376

Q1 2024

Q2 2024

Q3 2024

Q4 2024

FY 2024

Reported change

LFL change

Reported change

LFL change

Reported change

LFL change

Reported change

LFL change

Reported change

LFL change

BY GEOGRAPHICAL ZONE

Europe

+3.9%

+2.8%

+0.7%

+0.7%

+1.5%

+1.4%

+2.0%

+1.8%

+2.0%

+1.7%

North America

+1.3%

+2.5%

-6.4%

+5.0%

-7.7%

+5.8%

-5.2%

+7.7%

-4.5%

+5.2%

China, North Asia & Oceania

+1.9%

+8.9%

+5.0%

+8.4%

+7.9%

+8.0%

+7.8%

+6.8%

+5.7%

+8.0%

Latin America

+5.4%

+4.1%

+4.0%

+5.0%

-8.5%

+2.7%

+2.9%

+4.7%

+8.4%

+4.2%

Rest of the World

-22.7%

+6.0%

-20.8%

+5.3%

+1.4%

+6.0%

+1.8%

+5.4%

-10.9%

+5.7%

BY CATEGORY

EDP

-7.8%

+3.0%

-11.6%

+3.3%

-5.5%

+4.1%

-3.1%

+4.7%

-6.0%

+3.8%

Specialized Nutrition

+1.9%

+3.8%

+3.3%

+4.7%

+5.7%

+5.2%

+6.1%

+4.6%

+5.1%

+4.6%

Waters

+7.6%

+8.1%

+4.7%

+4.4%

-0.6%

+3.2%

+3.3%

+5.3%

+3.8%

+5.1%

TOTAL

-2.5%

+4.1%

-4.1%

+4.0%

-1.2%

+4.2%

+0.9%

+4.7%

-0.9%

+4.3%

Disclaimer: This press release presents the results for the full year 2024 from the consolidated financial statements of Danone as of December 31, 2024 (unaudited). Regarding the audit process, as of today, the Statutory Auditors have substantially completed their examination of financial statements and verification of the sustainability information.

CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Consolidated income statement and earnings per share (unaudited)

		Year ended December 31
(in € millions except earnings per share in €)		2023	2024
Sales		27,619	27,376
Cost of goods sold		(14,535)	(13,769)
Selling expense		(6,288)	(6,572)
General and administrative expense		(2,748)	(2,928)
Research and Development expense		(398)	(447)
Other income (expense)		(170)	(102)
Recurring operating income		3,481	3,558
Other operating income (expense)		(1,438)	(179)
Operating income		2,042	3,379
Interest income on cash equivalents and short-term investments		341	403
Financial interest on debt		(513)	(600)
Cost of net financial debt		(172)	(197)
Other financial income		60	41
Other financial expense		(245)	(224)
Income before tax		1,686	2,999
Income tax		(768)	(929)
Net income from fully consolidated companies		917	2,070
Share of profit (loss) of equity-accounted companies		36	30
NET INCOME		953	2,100
Net income – Group share		881	2,021
Net income – Non-controlling interests		72	79
Earnings per share – Group share		1.36	3.14
Diluted earnings per share – Group share		1.36	3.13

Consolidated balance sheet (unaudited)

		As of December 31
(in € millions)		2023	2024
ASSETS
Goodwill		17,340	18,062
Brands		5,256	5,390
Other intangible assets		498	556
Intangible assets		23,093	24,009
Property, plant and equipment		6,441	6,519
Investments in equity-accounted companies		416	583
Investments in other non-consolidated companies		324	325
Long-term loans and financial assets		515	538
Other financial assets		839	864
Derivatives – assets		34	3
Deferred taxes		746	528
Non-current assets		31,570	32,505
Inventories		2,341	2,277
Trade receivables		2,919	2,922
Other current assets		1,259	1,387
Short-term loans		3	2
Derivatives – assets		16	37
Short-term investments		3,638	4,685
Cash		2,363	1,475
Assets held for sale		376	–
Current assets		12,916	12,786
TOTAL ASSETS		44,486	45,292

		As of December 31
(in € millions)		2023	2024
EQUITY AND LIABILITIES
Share capital		169	170
Additional paid-in capital		5,256	5,331
Retained earnings and other		16,845	17,546
Translation adjustments		(4,036)	(3,134)
Accumulated other comprehensive income		(507)	(592)
Treasury shares		(1,552)	(1,527)
Equity – Group share		16,176	17,795
Non-controlling interests		46	59
Consolidated equity		16,222	17,853
Financing		10,447	9,929
Derivatives – liabilities		293	246
Liabilities related to put options granted to non-controlling interests		–	–
Non-current financial debt		10,739	10,175
Provisions for retirement obligations and other long-term benefits		904	900
Deferred taxes		1,489	1,480
Other provisions and non-current liabilities		1,149	1,152
Non-current liabilities		14,281	13,707
Financing		5,154	4,291
Derivatives – liabilities		23	19
Liabilities related to put options granted to non-controlling interests and earn‑outs on acquisitions resulting in control		356	317
Current financial debt		5,533	4,627
Trade payables		4,779	5,147
Other provisions and current liabilities		3,580	3,957
Liabilities directly associated with assets held for sale		90	–
Current liabilities		13,982	13,732
TOTAL EQUITY AND LIABILITIES		44,486	45,292

Consolidated statement of cash flows (unaudited)

		Year ended December 31
(in € millions)		2023	2024
Net income		953	2,100
Share of profit (loss) of equity-accounted companies, net of dividends received		(13)	(7)
Depreciation, amortization and impairment of property, plant and equipment and intangible assets		1,611	1,168
Net change in provisions and liabilities		(52)	(21)
Change in deferred taxes		(46)	61
(Gains) losses on disposal of property, plant and equipment and financial investments		(7)	(225)
Expense related to share-based payments and Company Savings Plans		61	71
Cost of net financial debt		170	196
Net interest paid		(181)	(167)
Net change in interest income (expense)		(11)	29
Other items with no cash impact		669	122
Cash flows provided by operating activities, before changes in net working capital		3,165	3,297
(Increase) decrease in inventories		41	50
(Increase) decrease in trade receivables		74	(7)
Increase (decrease) in trade payables		324	353
Change in other receivables and payables		(162)	137
Change in working capital requirements		277	534
Cash flows provided by operating activities		3,442	3,831
Capital expenditure		(847)	(923)
Proceeds from the disposal of property, plant and equipment		15	18
Net cash outflows on purchases of subsidiaries and financial investments		(162)	(153)
Net cash inflows on disposal of subsidiaries and financial investments		177	507
(Increase) decrease in long-term loans and other long-term financial assets		(17)	87
Cash flows provided by (used in) investment activities		(834)	(463)
Increase in share capital and additional paid-in capital		69	76
Purchase of treasury shares (net of disposals)		–	–
Net issuance of undated subordinated notes		(750)	–
Interest expense and redemption premium on undated subordinated notes		(18)	(5)
Dividends paid to Danone shareholders		(1,279)	(1,348)
Buyout of non-controlling interests		(118)	–
Dividends paid to non-controlling interests		(62)	(108)
Contribution from non-controlling interests to capital increases		–	1
Transactions with non-controlling interests		(181)	(108)
Bonds issued during the period		1,597	1,397
Bonds redeemed during the period		(1,852)	(2,006)
Net cash flows from other current and non-current financial debt		577	(808)
Net cash flows from short-term investments		(220)	(1,015)
Cash flows provided by (used in) financing activities		(2,057)	(3,817)
Effect of exchange rate and other changes		(503)	(2)
INCREASE IN CASH		49	(452)
Cash as of January 1		1,051	2,363
Cash as of December 31		2,363	1,475
Net cash as of January 1		721	1,099
Net cash as of December 31		1,099	647
ADDITIONAL INFORMATION
Income tax payments during the year		(730)	(766)

---

All references in this document to Like-for-like (LFL) changes, Recurring operating income and margin, Margin from operations, Recurring net income, Recurring income tax rate, Recurring EPS, Free cash flow and Net financial debt, correspond to alternative performance measures not defined by IFRS. Their definitions, as well as their reconciliation with financial statements, are listed on pages 6 to 9.

Attachment

• PR_Danone_FY_2024

FAQ

What is Danone's (DANOY) sales growth for FY 2024?

Danone achieved +4.3% like-for-like sales growth in FY 2024, with +3.0% from volume/mix and +1.3% from price increases.

How much is Danone's (DANOY) proposed dividend for 2024?

Danone proposed a dividend of €2.15 per share for FY 2024, representing a 2.4% increase from the previous year.

What is the size of Danone's (DANOY) share buyback program for 2025?

Danone plans to buy back 2.7 million shares in 2025 to offset dilution from employee shareholding plans.

What is Danone's (DANOY) guidance for 2025?

Danone expects like-for-like sales growth between +3% and +5%, with recurring operating income growing faster than sales.

How much did Danone's (DANOY) net debt decrease in 2024?

Danone's net debt decreased to €8.6 billion from €10.2 billion, driven by strong free cash flow generation.