- Danone’s 2Q like-for-like sales increased by 4%, surpassing the estimated 3.8%.
- Sales breakdown:
- Essential Dairy & Plant-based sales grew by 3.3%, beating the estimate of 2.52%.
- Specialized Nutrition sales rose by 4.7%, ahead of the 4.2% estimate.
- Waters sales increased by 4.4%, but fell short of the 6.1% estimate.
- Volume/mix improved by 2.9%, surpassing the estimated 1.78%.
- Prices increased by 1%, below the estimated 2.12% increase.
- Forex impact was -2.4%, slightly better than the estimated -2.52%.
- Total sales reached EUR 6.94 billion, a decrease of 4.1% y/y, but above the EUR 6.9 billion estimate.
- Category sales figures:
- Essential Dairy & Plant-based sales were EUR 3.30 billion, a 12% decline y/y, missing the EUR 3.32 billion estimate.
- Specialized Nutrition sales were EUR 2.21 billion, a 3.3% increase y/y, exceeding the EUR 2.11 billion estimate.
- Waters sales were EUR 1.43 billion, a 4.7% rise y/y, beating the EUR 1.39 billion estimate.
- First half results:
- Recurring operating income was EUR 1.75 billion, a 0.7% increase y/y, slightly above the EUR 1.74 billion estimate.
- Essential Dairy & Plant-Based recurring operating income was EUR 512 million, down 15% y/y, missing the EUR 571.5 million estimate.
- Specialized Nutrition recurring operating income was EUR 901 million, a 1.8% increase y/y, above the EUR 890.2 million estimate.
- Waters recurring operating income was EUR 333 million, a significant 36% increase y/y, far exceeding the EUR 268 million estimate.
- Recurring operating margin was 12.7%, above the previous year’s 12.2% and slightly surpassing the 12.6% estimate.
- Year forecast:
- Danone still expects like-for-like sales growth of 3% to 5%, compared to the 3.99% estimate.
- The company confirms its full-year guidance for moderate improvement in recurring operating margin.
A look at Danone SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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
Based on the Smartkarma Smart Scores, Danone SA shows a promising long-term outlook. With a solid overall score, the company ranks well across multiple key factors. Danone SA demonstrates strength in dividend payouts and momentum, indicating a stable income stream for investors. Additionally, its resilience score suggests a capacity to weather economic uncertainties, providing a sense of security to shareholders. While the growth and value scores are not the highest, they still position the company well for sustained performance in the future.
As a food processing company, Danone SA specializes in producing a variety of products including dairy items, beverages, baby food, and clinical/medical nutrition offerings. Leveraging its diverse portfolio, Danone SA is well-positioned to capitalize on different market segments and consumer preferences. The Smartkarma Smart Scores point towards a positive trajectory for the company, highlighting its strategic positioning and potential for long-term success in the industry.
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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