Danone Shares Mark the Highest Rise in the CAC 40 After Better Than Expected Q1

Strong Quarterly Performance Despite Challenges

Danone published this morning a quarterly revenue of 6.708 billion euros, up by 2.7% on a like-for-like basis, supported by both volume and price effects. This rate was achieved despite the recall of infant milks that weighed on the group's activity. In reported data, however, revenues fell by 2.0%, penalized by an unfavorable exchange rate effect of 5.6 points. The regional performance reveals marked contrasts. Asia-Pacific stands out with an organic growth of 6.0%, being the main growth driver. Conversely, the Europe, Middle East, and Africa region only shows a modest advance of 0.6%, a much more modest pace that illustrates a less favorable consumer environment on the Old Continent. The stock gains 2.88% to 68.33 euros, whereas the CAC 40 loses ground during the session. Among European comparables, L'Oréal is stagnant (+0.01%) while Unilever declines by 1.79%.

Stock Still Below Moving Averages Despite Today's Rise

Despite today's rise, the stock is still trading below its 50-day moving average, located at 70.03 euros, and even more so below its 200-day average, at 72.87 euros. This positioning reflects a medium-term downward trend, consistent with a decline of 7.34% over one year. The price is currently in the middle of its Bollinger bands (upper boundary at 69.90 euros, lower boundary at 66.55 euros), without any extreme tension signals either upwards or downwards. The RSI stands at 37, a level that remains close to the oversold zone and confirms that the selling pressure of recent weeks has not yet been fully absorbed. The immediate support threshold is at 66.42 euros, corresponding to the previous day's closing price, while the most significant resistance is identified at 73.12 euros. To register a real bullish reversal, the stock must first reclaim its MM50 before aiming to break through this resistance, which is nearly 7% away from the current price.