- Danone’s recurring operating income for the first half of the year slightly exceeded estimates at €1.81 billion, marking a 3.7% increase year-over-year (y/y).
- Essential Dairy & Plant-Based segment reported a recurring operating income of €521 million, a 1.8% increase y/y, but slightly below the estimated €525.5 million.
- Specialized Nutrition had strong performance with a recurring operating income of €1.00 billion, an 11% increase y/y, which surpassed the estimate of €940.7 million.
- The Waters division faced challenges, with recurring operating income at €287 million, a 14% decrease y/y, falling short of the €336.2 million estimate.
- Overall recurring operating margin improved to 13.2% from 12.7% y/y, slightly above the estimate of 13.1%.
- Second quarter like-for-like sales increased by 4.1%, surpassing the estimate of 3.79%.
- Essential Dairy & Plant-based segment saw like-for-like sales growth of 3%, ahead of the 2.93% estimate.
- Specialized Nutrition’s like-for-like sales surged by 8.7%, exceeding the 5.26% estimate.
- Waters division experienced a decline, with like-for-like sales down by 0.5%, missing the 3.5% growth estimate.
- Total sales amounted to €6.91 billion, a 0.4% decline y/y, slightly below the €6.93 billion estimate.
- Essential Dairy & Plant-based sales met estimates at €3.26 billion, reflecting a 1.1% decrease y/y.
- Specialized Nutrition sales reached €2.31 billion, a 4.2% increase y/y, surpassing the €2.24 billion estimate.
- Water sales fell to €1.35 billion, a 5.7% decrease y/y, not meeting the €1.44 billion estimate.
- For the year, Danone maintains its forecast of like-for-like sales growth between 3% to 5%, though below the 4.15% estimate.
- The company expects recurring operating income for the full year to grow at a faster pace than sales.
Danone SA on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely covering Danone SA, a major player in the food industry. Baptista Research recently initiated coverage on Danone SA, highlighting the company’s focus on innovative product lines and health-centric branding for long-term growth. In their report, Baptista Research delves into Danone’s 2024 full-year financial results, showcasing a solid like-for-like sales growth of 4.3% for the year, with a strong finish in the fourth quarter at 4.7%. The analysis provides valuable insights into Danone’s performance and strategic direction as it progresses through the “Renew Danone” strategy phase.
Investors and market participants can gain in-depth perspectives from independent analysts like Baptista Research on Smartkarma regarding Danone SA‘s trajectory. With a bullish sentiment towards Danone’s growth prospects, analysts are optimistic about the company’s future as it navigates through its strategic initiatives. Through platforms like Smartkarma, investors can access a wealth of information and analysis, enabling them to make informed decisions about their investments in companies like Danone SA. The detailed coverage by analysts contributes to a better understanding of Danone’s position in the market and its potential for sustained growth moving forward.
A look at Danone SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have given Danone SA positive Smart Scores across various key factors influencing its long-term outlook. With a strong score of 5 for Growth, the company is positioned for expansion and development in the future. This indicates a positive trajectory for Danone in terms of market performance and potential.
Additionally, Danone SA received a high score of 4 for Dividend, suggesting stability and attractiveness for income-oriented investors. Combined with moderate scores in Value, Resilience, and Momentum, Danone SA presents a well-rounded profile for investors seeking a reliable investment option in the food processing sector.
Summary: Danone SA is a food processing company specializing in dairy products, beverages, baby food, and clinical/medical nutrition products.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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