Danone: Strong FY 2024 Results; Entering the Next Chapter of Renew with Confidence

Danone, the global food and beverage company, has just released its full-year 2024 results, and it's safe to say they're nothing short of impressive. The company, led by CEO Antoine de Saint-Affrique, has been on a transformative journey with its Renew Danone strategy, and the fruits of that labor are now bearing sweet results.

The company reported sales of €27,376m, up +4.3% on a like-for-like (LFL) basis, driven by a +3.0% increase in volume/mix and a +1.3% increase in price. The fourth quarter also saw robust growth, with sales up +4.7% LFL, led by a strong +4.2% increase in volume/mix and a resilient +0.6% price increase.



Danone's strong performance in 2024 can be attributed to several key factors:

1. Operational excellence and executional discipline: Danone has improved its operational efficiency and execution, enabling it to reinvest in its brands and capabilities while maintaining a strong financial discipline. This has led to a significant improvement in its return on invested capital (ROIC), which is now back into double-digit territory.
2. Portfolio management: The company has taken a proactive and disciplined approach to managing its portfolio, driving its core categories, boosting its winners, and progressively fixing its underperformers. This has resulted in broad-based quality growth across categories and geographies.
3. Innovation and science: Danone has renewed its focus on science to the service of consumers and patients, which has helped it address emerging trends and consumer needs more effectively. This has been particularly evident in its pivot towards protein and gut health categories.
4. Geographical expansion: The company has continued to win in its strong geographies, such as Europe, while expanding its presence in markets like the US and catching opportunities in emerging regions like India and Southeast Asia.



Danone's recurring operating margin also saw a significant improvement, up +39 bps to 13.0%, driven by a strong improvement in the margin from operations. The company has managed to reinvest in future growth while maintaining a strong financial discipline, thanks to its focus on value creation and return-oriented capital allocation.



As Danone enters the next chapter of its Renew strategy, it's clear that the company is stronger than ever. With a unique, health-driven portfolio, a renewed focus on science, a strong brand portfolio, and a continuous improvement mindset, Danone is well-positioned to seize long-term market opportunities.



In conclusion, Danone's strong FY 2024 results are a testament to the company's successful transformation under the Renew Danone strategy. With a clear focus on value creation, operational excellence, and geographical expansion, Danone is well on its way to delivering on its long-term ambition of €3bn free-cash-flow and a structurally double-digit return on invested capital (ROIC). As the company enters the next chapter of its journey, investors can be confident that Danone is poised for continued success.