Core Insights - The company reported strong FY 2024 results, achieving a like-for-like sales growth of +4.3% driven by a +3.0% increase in volume/mix and a +1.3% increase in price [3][6][9] - The recurring operating margin improved to 13.0%, up +39 basis points from the previous year, reflecting strong operational performance and effective reinvestment strategies [4][17] - The net income attributable to the group increased significantly by +129.4% to €2,021 million, with diluted EPS rising to €3.13, a +130.2% increase [5][18][19] Financial Performance - FY 2024 sales amounted to €27,376 million, a reported decrease of -0.9% but an increase of +4.3% on a like-for-like basis [5][9] - Recurring operating income reached €3,558 million, reflecting a +2.2% increase from FY 2023 [5][17] - Free cash flow reached a record level of €3,003 million, up +14.0% from the previous year [20] Regional Performance - North America saw a like-for-like sales growth of +7.7%, driven by strong performance in High Protein, Coffee Creations, and Waters [11] - Sales in China, North Asia & Oceania increased by +6.8% on a like-for-like basis, with strong volume/mix growth [12] - Latin America reported a +4.7% increase in like-for-like sales, supported by robust performances from key brands [13] Category Performance - The EDP category experienced a decline in reported sales, down -3.1% in Q4 2024, but showed a +4.7% increase on a like-for-like basis [10][55] - Specialized Nutrition grew by +6.1% in Q4 2024, with strong contributions from Medical Nutrition [10][12] - Waters category sales increased by +5.3% on a like-for-like basis, driven by strong brand performances [10][14] Future Outlook - The company expects like-for-like sales growth in 2025 to be between +3% and +5%, with recurring operating income anticipated to grow faster than sales [22] - A proposed dividend of €2.15 per share for FY 2024 represents a +2.4% increase compared to the previous year [21] - The company plans to initiate a share buyback program of 2.7 million shares in 2025 to offset dilution from employee shareholding plans [23]
Danone: Strong FY 2024 results; Entering the next chapter of Renew with confidence