- Danone’s full-year recurring operating income rose by 2.2% to €3.56 billion, beating the estimate of €3.51 billion.
- The Essential Dairy & Plant-Based segment saw a decline in recurring operating income by 6.7% to €1.14 billion, yet exceeded the estimate of €1.12 billion.
- Specialized Nutrition’s recurring operating income increased by 4% to €1.84 billion, slightly better than the estimate of €1.82 billion.
- The Waters segment experienced an impressive 18% growth in recurring operating income to €574 million, though below the estimate of €596.2 million.
- Danone’s recurring operating margin improved to 13%, matching the forecast and up from 12.6% the previous year.
- Total sales slightly decreased by 0.9% to €27.38 billion, yet exceeded the estimate of €27.25 billion.
- Like-for-like sales increased by 4.3%, surpassing the 4.13% estimate.
- Dividend per share was raised to €2.15 compared to €2.10 the previous year, beating the estimate of €2.12.
- Fourth-quarter results showed a 4.7% rise in like-for-like sales, exceeding the estimate of 4.28%.
- Essential Dairy & Plant-Based like-for-like sales were up 4.7%, beating the expected 3.84% growth.
- Specialized Nutrition saw a 4.6% rise in like-for-like sales, just below the estimate of 4.99%.
- Waters registered a 5.3% increase in like-for-like sales, well above the 4.05% projection.
- Total quarterly sales increased by 0.9% to €6.72 billion, exceeding the estimate of €6.6 billion.
- Essential Dairy & Plant-based sales dropped by 3.1% to €3.36 billion.
- Specialized Nutrition sales went up by 6.2% to €2.31 billion.
- Waters sales increased by 3.3% to €1.05 billion, slightly above the estimate of €1.04 billion.
- Danone forecasts like-for-like sales growth between 3% and 5% for the year, with an estimate of approximately 4.03%.
- The company plans to buy back 2.7 million shares in 2025 to offset the dilution from employee capital increases and long-term incentive plans.
A look at Danone SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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 are optimistic about the long-term outlook for Danone SA, a leading food processing company. Smartkarma Smart Scores indicate that Danone SA has a strong momentum with a score of 5, suggesting positive market sentiment and potential for growth. The company also received decent scores for Dividend, Growth, and Resilience, reflecting a balanced approach to financial health and future expansion. However, the Value score indicates room for improvement in terms of the company’s current valuation.
Overall, Danone SA is well-positioned in the market with its diverse product portfolio including dairy products, beverages, baby food, and clinical/medical nutrition products. With solid scores in several key areas, investors may view Danone SA as a promising investment option for the long term, provided that value considerations are taken into account.
Summary of the company description: Danone SA is a food processing company that specializes in producing 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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