Danone beats FY25 expectations but disappoints in North America

Danone trumped analyst expectations with strong volume-led sales growth in FY25 but delivered another soft quarter in North America as capacity and supply constraints continued to bite.

The company’s protein and medical nutrition products were the catalysts for the group’s performance, which delivered a 4.5% increase in like-for-like sales in the year versus a 4.4% consensus.

All regions and categories posted growth in FY25, with specialised nutrition (up 7.4% in LFL sales) and China, North Asia and Oceania (up 11.7%) leading the charge.

North America was the softest performer due to capacity constraints in high-protein yogurt and creamers, with the latter still struggling to regain share following a late 2024 recall of International Delight products.

Danone CEO Antoine de Saint-Affrique affirmed 2026 guidance of LFL sales growth between +3% to +5%, in line with the group’s mid-term aim.

He said the company will continue to lean into health and wellness trends by doubling down on protein and medical nutrition; re-shaping alt dairy into a benefit-led category, and exploiting channels outside mass retail to unlock growth.

“Our categories continue to outperform the broader food and beverage industry fuelled by powerful and converging trends, all pointing in the same direction,” he told investors. “The FY25 performance reflects the strengths and the resilience of our unique health-focused, and this performance is deeply connected to the structural trends that are reshaping the food industry.”

Protein roars ahead – but fiber is next

Danone’s protein portfolio including brands Oikos, YoPro and Skyr drove growth in Essential Dairy and Plant-based. In the US, Oikos exceeded €1 billion revenue in 2025 and the trend is seen as a long-term opportunity for the company.

“Protein is essential for good health at every stage of life, and demand continues to rise, particularly among people using GLP-1 who are actively seeking ways to preserve strength,” the chief executive said. “But consumers today…increasingly seek nutrient-dense high-quality protein supported by the right dietary complements.”

Fiber can unlock future growth in both protein and gut health, he added. “Protein and fiber represent a major long-term growth opportunity, and we are strengthening our leadership accordingly, building on our capabilities in the field of biotics.”

To that end, Danone launched Oikos Fusion, a fiber-fortified yogurt drink suitable for GLP-1 users, as well as kefir and fiber-enriched products as part of its Activia gut health range.

Danone is also aiming to improve performance in plant-based – particularly Silk – with benefit-led messaging.

North America struggles

Outside of a strong performance in medical nutrition – where Danone’s strategic acquisitions including of Kate Farms have enabled it to unlock access into the US healthcare system – North America struggled to build on last year’s performance.

With a 2% LFL volume growth, the region struggled due to ongoing bottlenecks in yogurt production and Danone’s loss of shelf share in coffee creamers. The company has also been slow to enter the burgeoning clean-label refrigerated creamer space, where it currently plays through Too Good & Co. (pictured) but not its flagship brand International Delight.

CFO Juergen Esser told investors that gains from high-protein brand Oikos were offset by ‘unsatisfactory performance’ in plant-based and coffee creamers in the region.

“In coffee creamers, we’ve seen our market shares progressively improve,” he said. “We are, however, clear that we need to double down on our efforts to bring International Delight back to where it belongs.” 2026 is expected to be a year of recovery and return to growth for creamers, he added, but progress isn’t expected until after the second quarter, he added.

Danone has strengthened leadership in North America with the appointment of Henri Bruxelles as President Americas and is seeking to consolidate into three regions – EMEA, APAC and Americas – going forward.