Danone sales growth beats forecasts despite China slowdown

29th Jul 2026 15:10

(Sharecast News) - Danone reported second-quarter like-for-like sales growth of 4.2% on Wednesday, ahead of expectations for 3.7%, as stronger pricing and a recovery in specialised nutrition offset a sharp slowdown in China.

Reported sales rose to €7.22bn from €6.91bn, with prices up 2.3% and volumes 1.9% higher.

Specialised nutrition sales increased 4.5% and waters grew 4.7%, helped by strong European demand during hot weather, while growth in China, North Asia and Oceania slowed to 3.6% from 10.3% in the first quarter.

First-half recurring operating income was €1.85bn, with the margin edging up to 13.3% from 13.2% as productivity gains offset pressures from an infant formula recall and inflation.

Danone reiterated its 2026 guidance for like-for-like sales growth of 3% to 5%, with recurring operating income expected to grow faster than sales.

"While some areas still require further progress and the environment remains unstable, we enter the second half of the year with confidence that 2026 will be another year of delivery," said chief executive Antoine de Saint-Affrique.

Reporting by Josh White for Sharecast.com.