Danone 4Q like-for-like sales +4.7, est +4.39%
TL;DR
Danone's Q4 2024 like-for-like sales grew 4.7%, exceeding full-year guidance, driven by strong performance in key regions and categories. The company reported improved margins, record free cash flow, and reaffirmed mid-term growth targets.
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Danone 4Q like-for-like sales +4.7, est +4.39%
Danone Reports Strong 4Q 2024 Like-for-Like Sales Growth of 4.7%
Danone's fourth-quarter 2024 like-for-like (LFL) sales rose 4.7%, outperforming its full-year 2024 guidance of 4.3% LFL growth. This performance reflects sustained momentum across key markets and product categories, driven by volume/mix and pricing strategies. For the full year, Danone reported LFL sales growth of 4.3%, with volume/mix contributing +3.0% and price increases adding +1.3%.
The Q4 2024 results highlight regional strengths. North America continued to deliver robust performance, particularly in High Protein, Coffee Creations, and Waters segments. Europe also showed progress, with the fifth consecutive quarter of positive volume/mix growth, signaling ongoing recovery in the EDP (Ecosystem of Daily Nutrition) business. China, North Asia, and Oceania maintained competitive growth across all categories.
Financial metrics reinforced the company's operational discipline. Recurring operating margin improved 39 basis points to 13.0% in 2024, supported by margin gains from operations while maintaining reinvestment in growth initiatives. Free cash flow reached a record €3.0 billion, up 14.0% year-over-year, enabling both strategic investments and debt reduction. Recurring earnings per share increased 2.5% to €3.63, with a proposed dividend of €2.15, reflecting a 2.4% increase.
Looking ahead, Danone reaffirmed its mid-term ambitions, projecting 2025 LFL sales growth between 3% and 5%, with recurring operating income expected to grow faster than sales. The company remains focused on balancing profitability with reinvestment, as outlined during its Capital Market Event in June 2024.
The results underscore Danone's ability to adapt to market dynamics while advancing its "Renew" strategic plan, emphasizing sustainable growth and operational efficiency.
