Danone: Strong FY 2024 results; Entering the next chapter of Renew
with confidence
2024 Full-Year Results
Press release – Paris, February 26, 2025
Strong FY 2024 results
Entering the next chapter of Renew with
confidence
-
FY 2024 sales of €27,376m up +4.3% on a like-for-like (LFL)
basis, with volume/mix up +3.0%, and price up +1.3%
-
Q4 sales up +4.7% LFL, with strong volume/mix of
+4.2%, and resilient price of +0.6%
-
Continued strong momentum in North America, notably in High
Protein, Coffee Creations and Waters
-
5th consecutive quarter of positive volume/mix in
Europe, demonstrating notably further progress in EDP
competitiveness
-
Sustained competitive growth in China, North Asia & Oceania in
all categories
-
Recurring operating margin up +39 bps at
13.0% driven by strong improvement in margin from
operations, while consistently reinvesting into future growth
-
Recurring EPS up +2.5% to €3.63
-
Record level of Free cash flow at €3.0bn, up
+14.0%
-
Proposed dividend up +2.4% to
€2.15
-
2025 guidance in line with mid-term ambition:
like-for-like sales growth expected between +3% and +5%, with
recurring operating income growing faster than sales
|
| Full-Year
2024 Key Figures |
|
in millions of euros unless stated otherwise |
FY 2023 |
FY 2024 |
Reported change |
Like-for-like
change (LFL) |
|
Sales |
27,619 |
27,376 |
-0.9% |
+4.3% |
|
Recurring operating income |
3,481 |
3,558 |
+2.2% |
|
|
Recurring operating margin |
12.6% |
13.0% |
+39 bps |
|
|
Non-recurring operating income and expenses |
(1,438) |
(179) |
+1,259 |
|
|
Operating income |
2,042 |
3,379 |
+65.4% |
|
|
Operating margin |
7.4% |
12.3% |
+495 bps |
|
|
Recurring net income – Group share |
2,283 |
2,345 |
+2.7% |
|
|
Non-recurring net income – Group share |
(1,402) |
(324) |
+1,078 |
|
|
Net income – Group share |
881 |
2,021 |
+129.4% |
|
|
Recurring diluted EPS (€) |
3.54 |
3.63 |
+2.5% |
|
|
EPS (€) |
1.36 |
3.13 |
+130.2% |
|
|
Cash flow from operating activities |
3,442 |
3,831 |
+11.3% |
|
|
Free cash flow |
2,633 |
3,003 |
+14.0% |
|
1
Antoine de Saint-Affrique: CEO
statement
We close the first chapter of Renew Danone
with a strong set of results, fully delivering on our 2022 mid-term
guidance. In 2024, the quality of our growth has further improved,
reaching +4.3% like-for-like sales growth driven by +3%
volume/mix.
This allowed us to drive operating leverage,
enabling us to further reinvest in our brands and capabilities, and
support the growth of our categories while maintaining a strong
financial discipline. Our focus on value creation and
return-oriented capital allocation led to a significant improvement
of our ROIC, now back into double-digit territory.
We believe that the food industry is at a
tipping point. Our unique, health-driven portfolio, our renewed
focus on science to the service of consumers and patients, our
strong brand portfolio and a continuous improvement mindset give us
the confidence that we can seize this long-term market opportunity.
We enter the next chapter as a stronger company, ready for
more.
I. FOURTH
QUARTER AND FULL-YEAR RESULTS
Fourth quarter and full-year
sales
In Q4 2024, sales stood at
€6,716m, up +4.7% on a like-for-like basis, led by an increase of
+4.2% from volume/mix and +0.6% from price. On a reported basis,
sales increased by +0.9%, notably due to the negative impact from
scope (-3.8%), resulting predominantly from the sale of Horizon
Organic and Wallaby. Reported sales were also negatively impacted
by forex (-2.3%), reflecting the depreciation of several currencies
against the euro, notably the Argentine Peso, the Mexican Peso, the
Brazilian Real and the Turkish Lira. In addition, hyperinflation
contributed positively to reported sales (+1.8%).
In 2024, sales stood at
€27,376m, up +4.3% on a like-for-like basis, led by an increase of
+3.0% from volume/mix and +1.3% from price. On a reported basis,
sales decreased by -0.9%, notably due to the negative impact from
scope (-4.8%), resulting predominantly from the exit of EDP Russia
and Horizon Organic and Wallaby. Reported sales were also
negatively impacted by forex (-2.8%), while hyperinflation
contributed positively (+1.6%).
Sales by operating segment
|
€ million except % |
Q4
2023 |
Q4
2024 |
Reported change |
LFL sales
growth |
Volume/mix growth |
FY
2023 |
FY
2024 |
Reported change |
LFL sales
growth |
Volume/mix
growth |
|
|
BY GEOGRAPHICAL ZONE |
|
|
|
|
|
|
|
|
|
|
|
Europe |
2,313 |
2,358 |
+2.0% |
+1.8% |
+3.0% |
9,382 |
9,568 |
+2.0% |
+1.7% |
+1.4% |
|
|
North America |
1,725 |
1,636 |
-5.2% |
+7.7% |
+5.9% |
6,889 |
6,579 |
-4.5% |
+5.2% |
+4.1% |
|
|
China, North Asia & Oceania |
822 |
886 |
+7.8% |
+6.8% |
+9.8% |
3,496 |
3,694 |
+5.7% |
+8.0% |
+9.1% |
|
|
Latin America |
704 |
724 |
+2.9% |
+4.7% |
+1.2% |
2,794 |
3,029 |
+8.4% |
+4.2% |
+0.0% |
|
|
Rest of the World |
1,092 |
1,112 |
+1.8% |
+5.4% |
+1.7% |
5,058 |
4,506 |
-10.9% |
+5.7% |
+1.4% |
|
|
BY CATEGORY |
|
|
|
|
|
|
|
|
|
|
|
EDP |
3,462 |
3,355 |
-3.1% |
+4.7% |
+3.8% |
14,322 |
13,463 |
-6.0% |
+3.8% |
+2.7% |
|
|
Specialized Nutrition |
2,174 |
2,308 |
+6.1% |
+4.6% |
+5.3% |
8,504 |
8,936 |
+5.1% |
+4.6% |
+3.4% |
|
|
Waters |
1,019 |
1,053 |
+3.3% |
+5.3% |
+3.0% |
4,793 |
4,977 |
+3.8% |
+5.1% |
+2.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
6,655 |
6,716 |
+0.9% |
+4.7% |
+4.2% |
27,619 |
27,376 |
-0.9% |
+4.3% |
+3.0% |
|
In Q4 2024,
Europe sales were up +1.8% on a like-for-like
basis, with volume/mix at +3.0% and price at -1.2%. The zone
registered its fifth consecutive quarter of positive volume/mix,
making step-by-step progress in EDP competitiveness. Specialized
Nutrition posted solid performance, while Waters delivered strong
growth, driven by evian, Volvic and Zywiec
Zdroj brands.
In North America, sales were up
+7.7% on a like-for-like basis, led by strong volume/mix, up +5.9%,
and resilient price, up +1.9%. This performance was driven by the
continued strong momentum in High Protein, Coffee Creations and
Waters, as well as solid growth in Specialized Nutrition, led by
Medical.
In China, North Asia &
Oceania sales were up +6.8% on a like-for-like basis, with
strong volume/mix at +9.8% and price at -3.0%. In Specialized
Nutrition, Infant Milk Formula continued to gain further market
share, in an improving category, while Medical Nutrition maintained
its strong momentum. In Waters, Mizone delivered another
quarter of strong growth, while EDP sustained its strong
performance in Japan.
In Latin America, sales were up
+4.7% on a like-for-like basis, with volume/mix up +1.2% and price
up +3.5%. In EDP, the growth was still impacted by the licensing
out of milk business in Brazil, while Danone,
Danette and YoPro brands delivered a robust
performance. Specialized Nutrition delivered strong growth, led by
Aptamil, while Waters benefited from normalized weather
conditions.
In the Rest of the World, sales
increased by +5.4% on a like-for-like basis, with volume/mix up
+1.7% and price up +3.7%, notably led by the solid performance of
Specialized Nutrition and Waters across the region. In EDP, Dairy
Africa showed further progress, with another quarter of strong
growth in Morocco.
Sales by geography by
category
Q4 2024
|
Europe |
North America |
China, North Asia & Oceania |
AMEA, CIS &
Latin America |
Total |
|
Sales (€m) |
LFL sales growth (%) |
Sales (€m) |
LFL sales growth (%) |
Sales (€m) |
LFL sales growth (%) |
Sales (€m) |
LFL sales growth (%) |
Sales (€m) |
LFL sales growth (%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
EDP |
1,075 |
+0.0% |
1,474 |
+7.8% |
95 |
+8.2% |
712 |
+5.2% |
3,355 |
+4.7% |
|
Specialized Nutrition |
819 |
+2.0% |
89 |
+3.2% |
700 |
+6.6% |
699 |
+6.1% |
2,308 |
+4.6% |
|
Waters |
464 |
+5.6% |
73 |
+12.3% |
91 |
+7.2% |
424 |
+3.5% |
1,053 |
+5.3% |
|
Total Company |
2,358 |
+1.8% |
1,636 |
+7.7% |
886 |
+6.8% |
1,836 |
+5.1% |
6,716 |
+4.7% |
FY 2024
|
Europe |
North America |
China, North Asia & Oceania |
AMEA, CIS &
Latin America |
Total |
|
Sales (€m) |
LFL sales growth (%) |
Sales (€m) |
LFL sales growth (%) |
Sales (€m) |
LFL sales growth (%) |
Sales (€m) |
LFL sales growth (%) |
Sales (€m) |
LFL sales growth (%) |
| |
|
|
|
|
|
|
|
|
|
|
|
EDP |
4,318 |
+0.9% |
5,922 |
+5.4% |
372 |
+11.6% |
2,850 |
+3.8% |
13,463 |
+3.8% |
|
Specialized Nutrition |
3,154 |
+1.4% |
353 |
-3.0% |
2,557 |
+6.3% |
2,873 |
+7.9% |
8,936 |
+4.6% |
|
Waters |
2,096 |
+3.6% |
304 |
+10.9% |
764 |
+12.2% |
1,813 |
+3.0% |
4,977 |
+5.1% |
|
Total Company |
9,568 |
+1.7% |
6,579 |
+5.2% |
3,694 |
+8.0% |
7,536 |
+5.1% |
27,376 |
+4.3% |
Recurring Operating Margin
Recurring operating income (€m) and margin (%)
|
FY 2023 |
FY 2024 |
Reported
change |
|
€m |
Margin (%) |
€m |
Margin (%) |
|
BY GEOGRAPHICAL ZONE |
|
|
|
|
|
|
|
|
Europe |
1,076 |
11.5% |
1,143 |
11.9% |
+48 bps |
|
North America |
699 |
10.1% |
749 |
11.4% |
+124 bps |
|
China, North Asia & Oceania |
1,052 |
30.1% |
1,086 |
29.4% |
-70 bps |
|
Latin America |
123 |
4.4% |
113 |
3.7% |
-68 bps |
|
Rest of the World |
530 |
10.5% |
468 |
10.4% |
-11 bps |
BY CATEGORY |
|
|
|
|
|
|
|
|
EDP |
1,224 |
8.5% |
1,142 |
8.5% |
-6 bps |
|
Specialized Nutrition |
1,772 |
20.8% |
1,842 |
20.6% |
-22 bps |
|
Waters |
485 |
10.1% |
574 |
11.5% |
+142 bps |
|
|
|
|
|
|
|
|
|
|
Total |
3,481 |
12.6% |
3,558 |
13.0% |
+39 bps |
Danone’s recurring operating
income reached €3,558m in 2024. Recurring
operating margin stood at 13.0%, up +39 basis points
(bps) compared to last year. This increase was mainly led by the
strong improvement in margin from operations (+242 bps), notably
driven by record productivity levels. Danone continued to step-up
its reinvestments in A&P, product superiority and capabilities,
which accounted for -173 bps. Finally, Overheads before
reinvestments had a negative effect of -18 bps, while other effects
had a combined impact of -12 bps, mainly due to a negative impact
from Forex.
Net income and Earnings per
share
|
|
FY 2023 |
FY 2024 |
|
|
|
in millions of euros unless stated otherwise |
Recurring |
Non-recurring |
Total |
|
Recurring |
Non-recurring |
Total |
|
|
|
Operating income |
3,481 |
(1,438) |
2,042 |
|
3,558 |
(179) |
3,379 |
|
|
|
Cost of net financial debt |
(172) |
|
(172) |
|
(197) |
|
(197) |
|
|
|
Other financial income and expense |
(135) |
(49) |
(185) |
|
(108) |
(75) |
(183) |
|
|
|
Income before tax |
3,173 |
(1,487) |
1,686 |
|
3,253 |
(254) |
2,999 |
|
|
| Income
tax |
(864) |
95 |
(768) |
|
(888) |
(41) |
(929) |
|
|
|
Effective tax rate |
27.2% |
|
45.6% |
|
27.3% |
|
31.0% |
|
|
|
Net income from fully consolidated companies |
2,309 |
(1,392) |
917 |
|
2,365 |
(295) |
2,070 |
|
|
| Share of
profit (loss) of equity-accounted companies |
55 |
(19) |
36 |
|
76 |
(46) |
30 |
|
|
| Net
income |
2,364 |
(1,411) |
953 |
|
2,441 |
(340) |
2,100 |
|
|
|
• Group share |
2,283 |
(1,402) |
881 |
|
2,345 |
(324) |
2,021 |
|
|
|
• Non-controlling interests |
81 |
(9) |
72 |
|
96 |
(17) |
79 |
|
|
|
Diluted EPS (€) |
3.54 |
|
1.36 |
|
3.63 |
|
3.13 |
|
Recurring EPS increased by
+2.5% to €3.63, driven by higher recurring operating income and a
good management of financial costs.
Non-recurring operating income and
expense reached -€179 million in 2024, including one-off
costs related to transformation projects, mainly in Europe and the
United States. This compares to -€1,438 million in 2023, which
reflected the deconsolidation of EDP Russia and the impairment
resulting from the disposal of Horizon Organic and Wallaby in the
US. As a result, Reported EPS stood at €3.13, up
+130.2%.
Cash flow and Debt
Free cash flow reached €3,003
million in 2024, up from €2,633 million in 2023, reflecting the
increase in recurring operating income, as well as a strong
improvement in working capital, now reaching -8.5% of sales. Capex
stood at -€923 million.
As of December 31, 2024, Danone’s net
debt stood at €8.6 billion, decreasing significantly from
€10.2 billion last year, reflecting mainly the strong free cash
flow generation.
Dividend
At the Annual Shareholders’ Meeting on April 24,
2025, Danone’s Board of Directors will propose a dividend of €2.15
per share in respect of the 2024 fiscal year, up +2.4% compared to
previous year. Assuming this proposal is approved, the ex-dividend
date will be May 3, 2025, and the dividend will be payable on May
7, 2025.
II. 2025
GUIDANCE
2025 guidance in line with mid-term ambition:
like-for-like sales growth expected between +3% and +5%, with
recurring operating income growing faster than sales.
III. SHARE
BUYBACK
Danone intends to buy back 2.7 million of
shares, in one or more tranches in 2025, in order to offset the
dilutive impacts resulting from the capital increases reserved to
employees and the long-term incentive plans to be implemented in
2025. The repurchased shares will be allocated to employee
shareholding plans. Details of the share buyback program are
available in section 7.2 of Danone’s 2023 Universal Registration
Document, available on Danone’s website.
IV. RECENT
MAJOR DEVELOPMENTS
- November 8, 2024:
Danone has been awarded #1 position in the 2024 Global Access To
Nutrition index (ATNi), which assesses the world’s 30 largest food
and beverage manufacturers. This award highlights Danone’s
dedication to promoting health and nutrition for consumers
and patients.
- February 21, 2025:
Following the mediation process ordered by the Judicial Court of
Paris before which three NGOs had brought legal proceedings against
Danone on January 9, 2023, an agreement between the parties has
been reached to end the proceedings concerning Danone’s vigilance
plan. This agreement involves reinforcing the vigilance plan, which
now gives a more detailed description of the consequences of the
use of plastic packaging and sets out in detail all the actions
that Danone is implementing in this respect.
V.
SHAREHOLDERS’ MEETING AND FINANCIAL STATEMENTS
At its meeting on February 25, 2025, the Board
of Directors approved the draft resolutions that will be submitted
to the approval of the Shareholders’ Meeting on April 24, 2025. In
particular, the Board proposes that shareholders renew the term of
office of Antoine de Saint-Affrique, Patrice Louvet, Géraldine
Picaud and Susan Roberts as Directors, whose current term of office
will expire on the next Shareholders’ Meeting. It will also submit
to the Shareholder’s Meeting resolutions notably on the
compensation of corporate officers, and on the renewal of the
existing financial authorizations.
At its meeting on February 25, 2025, the Board
of Directors approved the statutory and consolidated financial
statements for the 2024 fiscal year. Regarding the audit process,
as of today, the statutory auditors have substantially completed
their examination of financial statements and verification of the
sustainability information.
VI.
ALTERNATIVE PERFORMANCE MEASURES NOT DEFINED BY IFRS
IAS 29: impact on reported data
Danone has applied IAS 29 in hyperinflationary
countries, as defined in IFRS. Adoption of IAS 29 in
hyperinflationary countries requires their non-monetary assets and
liabilities and their income statement to be restated to reflect
the changes in the general purchasing power of their functional
currency, leading to a gain or loss on the net monetary position,
included in the net income. Moreover, their financial statements
are converted into euros using the closing exchange rate of the
relevant period.
IAS 29: impact on reported data
€ million except % |
Q4 2024 |
|
FY 2024 |
|
|
Sales |
3.8 |
|
126.1 |
|
|
Sales growth (%) |
0.06% |
|
0.46% |
|
|
Recurring Operating Income |
|
|
-68 |
|
|
Recurring Net Income – Group share |
|
|
-114 |
|
Breakdown by quarter of FY 2024 sales after
application of IAS 29
FY 2024 sales correspond to the addition of:
- Q4 2024
reported sales;
- Q1, Q2 and Q3
2024 sales resulting from the application of IAS 29 until December
31, 2024, to sales of entities in hyperinflationary countries
(application of the inflation rate until December 31, 2024, and
translation into euros using the December 31, 2024, closing rate)
and provided in the table below for information (unaudited
data)
|
€ million |
Q1 20241 |
Q2 20242 |
Q3 20243 |
Q4 2024 |
FY 2024 |
|
Europe |
2,336 |
2,447 |
2,427 |
2,358 |
9,568 |
|
North America |
1,737 |
1,594 |
1,611 |
1,636 |
6,579 |
|
China, North Asia & Oceania |
840 |
1,001 |
967 |
886 |
3,694 |
|
Latin America |
761 |
825 |
720 |
724 |
3,029 |
|
Rest of the World |
1,172 |
1,093 |
1,130 |
1,112 |
4,506 |
|
|
|
|
|
|
|
|
Total |
6,846 |
6,960 |
6,855 |
6,716 |
27,376 |
1Results from the
application of IAS 29 until December
31, 2024, to Q1 sales of
entities of hyperinflationary countries.
2Results from the application of IAS 29
until December 31, 2024, to
Q2 sales of entities of
hyperinflationary countries.
3Results from the application of IAS 29
until December 31,
2024, to Q3 sales of entities
of hyperinflationary countries.
Definitions of geographical
zones
Europe refers to
European countries.
North America refers
to the United States and Canada.
China, North Asia &
Oceania refers to China, Japan, Australia and New
Zealand.
Latin America refers
to Mexico, Brazil, Argentina and Uruguay.
Rest of the World
refers to Asia, Middle East including Turkey, Africa and CIS.
Financial indicators not defined in
IFRS
Due to rounding, the sum of values presented may
differ from totals as reported. Such differences are not
material.
Like-for-like changes
in sales reflect Danone's organic performance and essentially
exclude the impact of:
- changes in
consolidation scope, with indicators related to a given fiscal year
calculated on the basis of the previous year's scope;
- changes in
applicable accounting principles;
- changes in
exchange rates, with both previous-year and current-year indicators
calculated using the same exchange rate (the exchange rate used is
a projected annual rate determined by Danone for the current year
and applied to both previous and current years).
Since January 1, 2023, all countries with
hyperinflationary economies are taken into account in like-for-like
changes as follows: sales growth in excess of around 26% per year
(a three-year average at 26% would generally trigger the
application of hyperinflationary accounting as defined in IFRS) is
now excluded from the like-for-like sales growth calculation.
Bridge from like-for-like data to
reported data
|
(€ million except %) |
2023 sales |
Like-for-like change |
Impact of changes
in scope of consolidation |
Impact of changes in exchange rates & others incl.
IAS 29 |
Contribution of hyperinflation |
Reported change |
2024 sales |
|
|
|
|
|
|
|
|
|
|
Q4 |
6,655 |
+4.7% |
-3.8% |
-1.8% |
+1.8% |
+0.9% |
6,716 |
|
FY |
27,619 |
+4.3% |
-4.8% |
-1.9% |
+1.6% |
-0.9% |
27,376 |
Margin from operations
is defined as the Gross margin over Sales ratio, where Gross margin
corresponds to the difference between Sales and Industrial costs
excluding reengineering initiatives and Logistics / Transportation
costs.
Recurring operating
income is defined as Danone’s operating income
excluding Other operating income and expenses. Other operating
income and expenses comprise items that, because of their
significant or unusual nature, cannot be viewed as inherent to
Danone’s recurring activity and have limited predictive value, thus
distorting the assessment of its recurring operating performance
and its evolution. These mainly include:
- capital gains
and losses on disposals of businesses and fully consolidated
companies;
- impairment
charges on intangible assets with indefinite useful lives;
- costs related
to strategic restructuring operations or transformation plans;
- costs related
to major external growth transactions;
- costs related
to crises and major disputes;
- in connection
with IFRS 3 and IFRS 10, (i) acquisition costs related to
acquisitions of companies resulting in control, (ii) revaluation
gains or losses accounted for following a loss of control, and
(iii) changes in earn-outs subsequent to acquisitions resulting in
control.
Recurring operating
margin is defined as the Recurring operating income
over Sales ratio.
Other non-recurring financial income
and expense corresponds to financial income and
expense items that, in view of their significant or unusual nature,
cannot be considered as inherent to Danone’s recurring financial
management. These notably include changes in the value of
non-consolidated interests and profits or losses on the net
monetary position.
Non-recurring income
tax corresponds to income tax on non-recurring items
as well as tax income and expense items that, in view of their
significant or unusual nature, cannot be considered as inherent to
Danone’s recurring performance.
Recurring effective tax
rate measures the effective tax rate of Danone’s
recurring performance and is computed as the ratio of income tax
related to recurring items over recurring net income before
tax.
Non-recurring share of profit (loss)
of equity-accounted companies includes items that,
because of their significant or unusual nature, cannot be viewed as
inherent to the companies' recurring activity and thereby distort
the assessment of their recurring performance and trends in that
performance. These items mainly relate to:
- capital gains
and losses on disposals of Investments in equity-accounted
companies;
- impairment of
investments in equity-accounted companies;
- non-recurring
items, as defined by Danone, included in the share of profit (loss)
of equity-accounted companies.
Recurring net income
(or Recurring net income – Group Share) corresponds to the Group
share of the consolidated Recurring net income. The Recurring net
income excludes items that, because of their significant or unusual
nature, cannot be viewed as inherent to Danone’s recurring activity
and have limited predictive value, thus distorting the assessment
of its recurring performance and its evolution. Such non-recurring
income and expenses correspond to Other operating income and
expenses, Other non-recurring financial income and expenses,
Non-recurring income tax, and Non-recurring share of profit (loss)
of equity-accounted companies. These items, excluded from Net
income, represent Non-recurring net income.
Recurring EPS (or
Recurring net income – Group Share, per share after dilution) is
defined as the ratio of Recurring net income adjusted for hybrid
financing over Diluted number of shares. In compliance with IFRS,
income used to calculate EPS is adjusted for the coupon related to
the hybrid financing accrued for the period and presented net of
tax.
|
|
FY 2023 |
|
FY 2024 |
|
|
Recurring |
|
Total |
|
Recurring |
|
Total |
|
|
Net income-Group share (€ million) |
2,283 |
|
881 |
|
2,345 |
|
2,021 |
|
|
Coupon related to hybrid financing net of tax (€
million) |
(8) |
|
(8) |
|
(4) |
|
(4) |
|
|
Number of shares |
|
|
|
|
|
|
|
|
|
• Before dilution |
641,030,818 |
|
641,030,818 |
|
643,283,916 |
|
643,283,916 |
|
|
• After dilution |
641,738,674 |
|
641,738,674 |
|
644,436,743 |
|
644,436,743 |
|
|
EPS (€) |
|
|
|
|
|
|
|
|
|
• Before dilution |
3.55 |
|
1.36 |
|
3.64 |
|
3.14 |
|
|
• After dilution |
3.54 |
|
1.36 |
|
3.63 |
|
3.13 |
|
Free cash flow
represents cash flows provided or used by operating activities less
capital expenditure net of disposals and, in connection with IFRS
3, excluding (i) acquisition costs related to acquisitions of
companies resulting in control, and (ii) earn-outs related to
acquisitions of companies resulting in control and paid
subsequently to acquisition date.
|
(€ million) |
FY 2023 |
FY 2024 |
|
Cash flows provided by operating activities |
3,442 |
3,831 |
|
Capital expenditure |
(847) |
(923) |
|
Disposal of property, plant and equipment and acquisition costs
related to acquisitions of companies resulting in
control1 |
38 |
95 |
|
Free cash flow |
2,633 |
3,003 |
1 Represents acquisition costs related
to acquisitions of companies resulting in control that
were paid during the period
Net financial debt represents the net
debt portion bearing interest. It corresponds to current and
non-current financial debt (i) excluding Liabilities related to put
options granted to non-controlling interests and earn-outs on
acquisitions resulting in control and (ii) net of Cash and cash
equivalents, Short term investments and Derivatives – assets
managing net debt.
|
(€ million) |
December 31, 2023 |
December 31, 2024 |
|
Non-current financial debt |
10,739 |
10,175 |
|
Current financial debt |
4,270 |
3,799 |
|
Short-term investments |
(3,638) |
(4,685) |
|
Cash |
(2,363) |
(1,475) |
|
Bank Overdraft |
1,264 |
828 |
|
Derivatives — non-current assets1 |
(34) |
(3) |
|
Derivatives — current-assets1 |
(16) |
(37) |
|
Net debt |
10,221 |
8,601 |
- Liabilities related to put options granted to non-controlling
interests — non-current
|
- |
- |
- Liabilities related to put options granted to non-controlling
interests and earn-outs on acquisitions resulting in control —
current
|
(356) |
(317) |
|
Net financial debt |
9,865 |
8,285 |
1 Managing net debt
only
ROIC is the ratio of net operating
income in the current year to average capital invested in the
current and prior years).
o o O o o
FORWARD-LOOKING STATEMENTS
This press release contains certain
forward-looking statements concerning Danone. In some cases, you
can identify these forward-looking statements by forward-looking
words, such as “estimate”, “expect”, “anticipate”, “project”,
“plan”, “intend”, “objective”, “believe”, “forecast”, “guidance”,
“foresee”, “likely”, “may”, “should”, “goal”, “target”, “might”,
“will”, “could”, “predict”, “continue”, “convinced” and
“confident,” the negative or plural of these words and other
comparable terminology. Forward looking statements in this document
include, but are not limited to, predictions of future activities,
operations, direction, performance and results of Danone.
Although Danone believes its expectations
are based on reasonable assumptions, these forward-looking
statements are subject to numerous risks and uncertainties, which
could cause actual results to differ materially from those
anticipated in these forward-looking statements. For a detailed
description of these risks and uncertainties, please refer to the
“Risk Factor” section of Danone’s Universal Registration Document
(the current version of which is available at
www.danone.com).
Subject to regulatory requirements, Danone
does not undertake to publicly update or revise any of these
forward-looking statements. This document does not constitute an
offer to sell, or a solicitation of an offer to buy Danone
securities.
The
presentation to analysts and investors will be broadcast live today
from 8:00 a.m. (Paris time)
on Danone’s website
(www.danone.com).
Related slides will also be available on the website in
the Investors section.
APPENDIX – Sales by geographical zone
and by category (in € million)
|
|
Q1 |
Q2 |
Q3 |
Q4 |
FY |
|
|
|
|
|
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
|
|
|
BY GEOGRAPHICAL ZONE |
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
2,248 |
2,336 |
2,429 |
2,447 |
2,392 |
2,427 |
2,313 |
2,358 |
9,382 |
9,568 |
|
|
|
|
North America |
1,714 |
1,737 |
1,704 |
1,595 |
1,747 |
1,611 |
1,725 |
1,636 |
6,889 |
6,579 |
|
|
|
|
China, North Asia & Oceania |
824 |
840 |
954 |
1,001 |
896 |
967 |
822 |
886 |
3,496 |
3,694 |
|
|
|
|
Latin America |
689 |
727 |
779 |
810 |
771 |
706 |
704 |
724 |
2,794 |
3,029 |
|
|
|
|
Rest of the World |
1,486 |
1,150 |
1,369 |
1,084 |
1,100 |
1,115 |
1,092 |
1,112 |
5,058 |
4,506 |
|
|
|
BY CATEGORY |
|
|
|
|
|
|
|
|
|
|
|
|
EDP |
3,768 |
3,474 |
3,731 |
3,298 |
3,474 |
3,283 |
3,462 |
3,355 |
14,322 |
13,463 |
|
|
|
|
Specialized Nutrition |
2,143 |
2,183 |
2,142 |
2,213 |
2,070 |
2,189 |
2,174 |
2,308 |
8,504 |
8,936 |
|
|
|
|
Waters |
1,051 |
1,132 |
1,362 |
1,426 |
1,362 |
1,354 |
1,019 |
1,053 |
4,793 |
4,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
6,962 |
6,789 |
7,235 |
6,938 |
6,906 |
6,826 |
6,655 |
6,716 |
27,619 |
27,376 |
|
|
|
|
|
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024 |
FY 2024 |
|
|
|
Reported change |
LFL change |
Reported change |
LFL change |
Reported change |
LFL change |
Reported change |
LFL change |
Reported change |
LFL change |
|
BY GEOGRAPHICAL ZONE |
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe |
+3.9% |
+2.8% |
+0.7% |
+0.7% |
+1.5% |
+1.4% |
+2.0% |
+1.8% |
+2.0% |
+1.7% |
|
|
North America |
+1.3% |
+2.5% |
-6.4% |
+5.0% |
-7.7% |
+5.8% |
-5.2% |
+7.7% |
-4.5% |
+5.2% |
|
|
China, North Asia & Oceania |
+1.9% |
+8.9% |
+5.0% |
+8.4% |
+7.9% |
+8.0% |
+7.8% |
+6.8% |
+5.7% |
+8.0% |
|
|
Latin America |
+5.4% |
+4.1% |
+4.0% |
+5.0% |
-8.5% |
+2.7% |
+2.9% |
+4.7% |
+8.4% |
+4.2% |
|
|
Rest of the World |
-22.7% |
+6.0% |
-20.8% |
+5.3% |
+1.4% |
+6.0% |
+1.8% |
+5.4% |
-10.9% |
+5.7% |
|
BY CATEGORY |
|
|
|
|
|
|
|
|
|
|
|
|
EDP |
-7.8% |
+3.0% |
-11.6% |
+3.3% |
-5.5% |
+4.1% |
-3.1% |
+4.7% |
-6.0% |
+3.8% |
|
|
Specialized Nutrition |
+1.9% |
+3.8% |
+3.3% |
+4.7% |
+5.7% |
+5.2% |
+6.1% |
+4.6% |
+5.1% |
+4.6% |
|
|
Waters |
+7.6% |
+8.1% |
+4.7% |
+4.4% |
-0.6% |
+3.2% |
+3.3% |
+5.3% |
+3.8% |
+5.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
-2.5% |
+4.1% |
-4.1% |
+4.0% |
-1.2% |
+4.2% |
+0.9% |
+4.7% |
-0.9% |
+4.3% |
|
Disclaimer: This press release
presents the results for the full year 2024 from the consolidated
financial statements of Danone as of December 31, 2024 (unaudited).
Regarding the audit process, as of today, the Statutory Auditors
have substantially completed their examination of financial
statements and verification of the sustainability
information.
CONSOLIDATED FINANCIAL
STATEMENTS
(UNAUDITED)
Consolidated income statement and earnings per share
(unaudited)
| |
|
Year ended December 31 |
|
(in € millions except earnings per share in €) |
|
2023 |
2024 |
|
Sales |
|
27,619 |
27,376 |
|
|
|
|
|
|
Cost of goods sold |
|
(14,535) |
(13,769) |
|
Selling expense |
|
(6,288) |
(6,572) |
|
General and administrative expense |
|
(2,748) |
(2,928) |
|
Research and Development expense |
|
(398) |
(447) |
|
Other income (expense) |
|
(170) |
(102) |
|
Recurring operating income |
|
3,481 |
3,558 |
|
|
|
|
|
|
Other operating income (expense) |
|
(1,438) |
(179) |
|
Operating income |
|
2,042 |
3,379 |
|
|
|
|
|
|
Interest income on cash equivalents and short-term investments |
|
341 |
403 |
|
Financial interest on debt |
|
(513) |
(600) |
|
Cost of net financial debt |
|
(172) |
(197) |
|
Other financial income |
|
60 |
41 |
|
Other financial expense |
|
(245) |
(224) |
|
Income before tax |
|
1,686 |
2,999 |
|
|
|
|
|
|
Income tax |
|
(768) |
(929) |
|
Net income from fully consolidated companies |
|
917 |
2,070 |
|
|
|
|
|
|
Share of profit (loss) of equity-accounted companies |
|
36 |
30 |
|
NET INCOME |
|
953 |
2,100 |
|
|
|
|
|
|
Net income – Group share |
|
881 |
2,021 |
|
Net income – Non-controlling interests |
|
72 |
79 |
|
|
|
|
|
|
Earnings per share – Group share |
|
1.36 |
3.14 |
|
Diluted earnings per share – Group share |
|
1.36 |
3.13 |
Consolidated balance sheet (unaudited)
|
|
|
As of December 31 |
|
(in € millions) |
|
2023 |
2024 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Goodwill |
|
17,340 |
18,062 |
|
Brands |
|
5,256 |
5,390 |
|
Other intangible assets |
|
498 |
556 |
|
Intangible assets |
|
23,093 |
24,009 |
|
Property, plant and equipment |
|
6,441 |
6,519 |
|
Investments in equity-accounted companies |
|
416 |
583 |
|
Investments in other non-consolidated companies |
|
324 |
325 |
|
Long-term loans and financial assets |
|
515 |
538 |
|
Other financial assets |
|
839 |
864 |
|
Derivatives – assets |
|
34 |
3 |
|
Deferred taxes |
|
746 |
528 |
|
Non-current assets |
|
31,570 |
32,505 |
|
|
|
|
|
|
Inventories |
|
2,341 |
2,277 |
|
Trade receivables |
|
2,919 |
2,922 |
|
Other current assets |
|
1,259 |
1,387 |
|
Short-term loans |
|
3 |
2 |
|
Derivatives – assets |
|
16 |
37 |
|
Short-term investments |
|
3,638 |
4,685 |
|
Cash |
|
2,363 |
1,475 |
|
Assets held for sale |
|
376 |
– |
|
Current assets |
|
12,916 |
12,786 |
|
|
|
|
|
|
TOTAL ASSETS |
|
44,486 |
45,292 |
| |
|
As of December 31 |
|
(in € millions) |
|
2023 |
2024 |
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
|
Share capital |
|
169 |
170 |
|
Additional paid-in capital |
|
5,256 |
5,331 |
|
Retained earnings and other |
|
16,845 |
17,546 |
|
Translation adjustments |
|
(4,036) |
(3,134) |
|
Accumulated other comprehensive income |
|
(507) |
(592) |
|
Treasury shares |
|
(1,552) |
(1,527) |
|
Equity – Group share |
|
16,176 |
17,795 |
|
Non-controlling interests |
|
46 |
59 |
|
Consolidated equity |
|
16,222 |
17,853 |
|
|
|
|
|
|
Financing |
|
10,447 |
9,929 |
|
Derivatives – liabilities |
|
293 |
246 |
|
Liabilities related to put options granted to non-controlling
interests |
|
– |
– |
|
Non-current financial debt |
|
10,739 |
10,175 |
|
Provisions for retirement obligations and other long-term
benefits |
|
904 |
900 |
|
Deferred taxes |
|
1,489 |
1,480 |
|
Other provisions and non-current liabilities |
|
1,149 |
1,152 |
|
Non-current liabilities |
|
14,281 |
13,707 |
|
|
|
|
|
|
Financing |
|
5,154 |
4,291 |
|
Derivatives – liabilities |
|
23 |
19 |
|
Liabilities related to put options granted to non-controlling
interests and earn‑outs on acquisitions resulting in control |
|
356 |
317 |
|
Current financial debt |
|
5,533 |
4,627 |
|
Trade payables |
|
4,779 |
5,147 |
|
Other provisions and current liabilities |
|
3,580 |
3,957 |
|
Liabilities directly associated with assets held for sale |
|
90 |
– |
|
Current liabilities |
|
13,982 |
13,732 |
|
TOTAL EQUITY AND LIABILITIES |
|
44,486 |
45,292 |
Consolidated statement of cash flows
(unaudited)
| |
|
Year ended December 31 |
|
(in € millions) |
|
2023 |
2024 |
|
Net income |
|
953 |
2,100 |
|
Share of profit (loss) of equity-accounted companies, net of
dividends received |
|
(13) |
(7) |
|
Depreciation, amortization and impairment of property, plant and
equipment and intangible assets |
|
1,611 |
1,168 |
|
Net change in provisions and liabilities |
|
(52) |
(21) |
|
Change in deferred taxes |
|
(46) |
61 |
|
(Gains) losses on disposal of property, plant and equipment and
financial investments |
|
(7) |
(225) |
|
Expense related to share-based payments and Company Savings
Plans |
|
61 |
71 |
|
Cost of net financial debt |
|
170 |
196 |
|
Net interest paid |
|
(181) |
(167) |
|
Net change in interest income (expense) |
|
(11) |
29 |
|
Other items with no cash impact |
|
669 |
122 |
|
Cash flows provided by operating activities, before changes
in net working capital |
|
3,165 |
3,297 |
|
(Increase) decrease in inventories |
|
41 |
50 |
|
(Increase) decrease in trade receivables |
|
74 |
(7) |
|
Increase (decrease) in trade payables |
|
324 |
353 |
|
Change in other receivables and payables |
|
(162) |
137 |
|
Change in working capital requirements |
|
277 |
534 |
|
Cash flows provided by operating activities |
|
3,442 |
3,831 |
|
Capital expenditure |
|
(847) |
(923) |
|
Proceeds from the disposal of property, plant and equipment |
|
15 |
18 |
|
Net cash outflows on purchases of subsidiaries and financial
investments |
|
(162) |
(153) |
|
Net cash inflows on disposal of subsidiaries and financial
investments |
|
177 |
507 |
|
(Increase) decrease in long-term loans and other long-term
financial assets |
|
(17) |
87 |
|
Cash flows provided by (used in) investment
activities |
|
(834) |
(463) |
|
Increase in share capital and additional paid-in capital |
|
69 |
76 |
|
Purchase of treasury shares (net of disposals) |
|
– |
– |
|
Net issuance of undated subordinated notes |
|
(750) |
– |
|
Interest expense and redemption premium on undated subordinated
notes |
|
(18) |
(5) |
|
Dividends paid to Danone shareholders |
|
(1,279) |
(1,348) |
|
Buyout of non-controlling interests |
|
(118) |
– |
|
Dividends paid to non-controlling interests |
|
(62) |
(108) |
|
Contribution from non-controlling interests to capital
increases |
|
– |
1 |
|
Transactions with non-controlling interests |
|
(181) |
(108) |
|
Bonds issued during the period |
|
1,597 |
1,397 |
|
Bonds redeemed during the period |
|
(1,852) |
(2,006) |
|
Net cash flows from other current and non-current financial
debt |
|
577 |
(808) |
|
Net cash flows from short-term investments |
|
(220) |
(1,015) |
|
Cash flows provided by (used in) financing
activities |
|
(2,057) |
(3,817) |
|
Effect of exchange rate and other changes |
|
(503) |
(2) |
|
INCREASE IN CASH |
|
49 |
(452) |
|
|
|
|
|
|
Cash as of January 1 |
|
1,051 |
2,363 |
|
Cash as of December 31 |
|
2,363 |
1,475 |
|
Net cash as of January 1 |
|
721 |
1,099 |
|
Net cash as of December 31 |
|
1,099 |
647 |
|
|
|
|
|
|
ADDITIONAL INFORMATION |
|
|
|
|
Income tax payments during the year |
|
(730) |
(766) |
All references in this document to
Like-for-like (LFL) changes, Recurring operating income and margin,
Margin from operations, Recurring net income, Recurring income tax
rate, Recurring EPS, Free cash flow and Net financial debt,
correspond to alternative performance measures not defined by IFRS.
Their definitions, as well as their reconciliation with financial
statements, are listed on pages 6 to 9.
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