Danone Reports a 4.5% Growth in 2025 with an Increased Operating Margin
On Friday, Danone released its annual 2025 results, showing a 4.5% growth in comparable sales and an improvement in its current operating margin. The group confirms its 2026 targets with expected sales growth between 3% and 5%.
Revenue and Geographic Performance
Danone's revenue reached 27,283 million euros in 2025, up by 4.5% on a comparable basis. This growth is driven by a 2.7% increase in volume and mix and a 1.8% price effect. In reported data, revenue remained generally stable with a slight decline of 0.3%, affected by a negative 5.0% currency exchange impact, notably from the depreciation of the US dollar, Argentine peso, and Chinese renminbi. The fourth quarter showed strong momentum with a 4.7% growth in comparable data, benefiting from a 2.5% volume and mix and a 2.1% price effect. By geographic area, China, North Asia, and Oceania recorded exceptional performance with an 11.7% growth in comparable data. Europe continued its positive momentum with a 2.3% growth in comparable data. North America showed moderate performance with a 2.0% growth in comparable data, despite strong dynamics in high-protein yogurt ranges and specialized nutrition activities.
Operational Margin and Financial Performance
Danone's current operating margin reached 13.4% in 2025, up by 44 basis points compared to 2024. The current operating result amounted to 3,665 million euros, showing a 3.0% increase in reported data. This improvement reflects the optimization of operation margins, partially offset by reinvestments in the group's transformation. The net earnings per share increased by 4.6% to 3.80 euros. The free cash flow stood at 2,799 million euros, reflecting solid operational performance, although down by 6.8% from the record level of 3,003 million euros in 2024. Working capital needs improved to 10.2% of sales, a record level. Net debt was recorded at 8.4 billion euros as of December 31, 2025, an improvement from 8.6 billion euros as of December 31, 2024.
Sustainability and Future Outlook
Danone strengthens its sustainability positioning with a Triple A rating from CDP and achieving global B Corp certification. For 2026, the group sets a target for comparable sales growth between 3% and 5%, with expected current operating income growth outpacing that of revenue. The Board of Directors proposes a dividend of 2.25 euros per share, up by 4.7%, which will be submitted for approval at the General Meeting on April 23, 2026.
