revenue growth
3–5 pct
FY 2026
official guidance
Danone
Last · Paris€64.26-0.02 (-0.03%)stale · yahoo · 151h ago
Market cap€41.4B644.1M sh
P/E · TTM21.3fwd 15.2 · eps 3.02
Beta0.19vs S&P 500
Div yield3.49%annual · TTM
52w range
€60.64€80.14
Volume840.4Ksession
| Revenue | €27.4B |
|---|---|
| Operating income | €3.4B |
| Net income | €2.0B |
| Free cash flow | €2.9B |
| Operating margin | 12.3% |
| Net margin | 7.4% |
| Return on equity | 11.4% |
| Period | 2024 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Good underlying momentum, but near-term earnings visibility is insufficient for a buy.
Danone delivered Q1 like-for-like sales growth of 2.7% and confirmed FY2026 guidance for 3%-5% growth, with recurring operating income expected to grow faster than sales.
The health-led portfolio and APAC momentum support the bull case, but the investment is not a clean buy: infant-formula disruption, volatile input costs and still-unproven US dairy recovery leave meaningful execution and margin risk.
Themes
- Q1 Sales
- 2026 Guidance
- Infant Formula Recall
- Commodity Inflation
- Us Dairy Recovery
- Huel Acquisition
Near term
US yogurt capacity will ramp progressively through the next two quarters, while creamers benefit from lapping Q1 2025 supply issues; the key test is whether growth broadens beyond High-Protein.
Infant Milk Formula performance should normalize progressively, but Middle East replenishment remains disrupted and European category trust must be rebuilt after recalls.
Commodity, transport and packaging costs are highly volatile; hedging provides only short-term protection and productivity savings may not fully offset later inflation.
Indonesia flooding-related Waters disruption is reportedly normalizing, potentially supporting Q2, while Southeast Asia growth has been affected by phasing.
Q1 reported sales were EUR6.7 billion, including a -5.6% currency impact and a +0.5% scope benefit from Kate Farms integration.
Longer term
High-Protein, Kefir, Skyr, functional hydration and Medical Nutrition are scaling across regions and provide a differentiated health-focused growth platform.
APAC remains the strongest regional engine: APAC grew 6.0% like-for-like and China/CNAO grew 10.3%, with particularly strong allergy, adult oral medical nutrition and Essensis demand.
Kate Farms gives Danone access to the US hospital and healthcare channel for the first time; combining that access with Danone’s Specialized Nutrition science could expand Medical Nutrition materially.
Huel adds exposure to premium Functional Nutrition, direct-to-consumer distribution and digital marketing in Europe and the US, but its contribution depends on successful integration and portfolio scaling.
US competitiveness remains a structural concern outside protein; additional capacity improves availability, but management has not yet demonstrated sustained share recovery across the broader dairy portfolio.
Red flags
Management declined to quantify the Q1 or Q2 infant-formula recall impact beyond saying it was in line with prior commentary, leaving the recovery profile difficult to model.
Management would not comment on Q2 consensus or provide regional/subcategory guidance, despite analysts pressing for evidence of the expected acceleration.
COGS inflation assumptions were not quantified. Management cited hedging and productivity but acknowledged that further mitigation, including possible pricing, remains undecided.
Huel will not be EPS accretive in year one, while financing costs and the level of earnings accretion were not quantified.
European IMF market shares are described as fluid, with Danone up in some countries and down in others; recovery depends on rebuilding trust with parents and healthcare influencers.
The confirmed bottom-line outlook is qualitative—recurring operating income growing faster than sales—so the margin cushion against inflation and a weak Specialized Nutrition start remains unclear.
Forward outlook
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest ANNUAL · 2025-09-24
- Current Ratio Low
Red flags
- Current Ratio Low — Current ratio 0.93
Earnings transcripts
- Motley Fool
Brookfield (BN) Q2 2026 Earnings Call Transcript
BROOKFIELD Corp /ON/
- Issuer webcast
Recording
BROOKFIELD Corp /ON/
- Issuer IR
BN Q2 2026 transcript
BROOKFIELD Corp /ON/
- Issuer IR
Q1 2026 earnings call transcript
Danone
- Issuer IR
bn q1 2026 transcript
BROOKFIELD Corp /ON/
- Issuer webcast
Recording
BROOKFIELD Corp /ON/
Press & signals
- GlobeNewswire
Danone completes its acquisition of Huel, extending its portfolio in Functional Nutrition
- GlobeNewswire
Danone: Information on the total number of voting rights and shares
- GlobeNewswire
Danone and Arcor complete the creation of their joint venture to unlock new dairy opportunities in Argentina
The rest of this company's wire — with summaries and source links — is part of Pro.
See plansDocuments
FormReporting forFiledFlags
2026-09-042026-09-040
2026-09-042026-09-040