Danone Surpasses Q1 Sales Expectations Driven by Strong Demand in China

Danone has exceeded expectations for its first-quarter sales in 2025, as strong demand in China for infant formula and medical nutrition products offset weaker performance in the competitive U.S. coffee creamer market, according to European Supermarket Magazine.

The French consumer goods giant—whose brands include Evian and Badoit water and Activia yogurt—reported Q1 2025 sales of €6.844 billion ($7.79 billion).

This reflects a like-for-like increase of 4.3%, outperforming analyst expectations of 3.8% growth, based on a consensus provided by the company.

“With 4.3% like-for-like sales growth in Q1, we’ve delivered a strong start to the year across all categories, demonstrating the strength of our execution and the relevance of our health-focused portfolio,” said CEO Antoine de Saint-Affrique in a statement.

Tariff Uncertainty and Market Resilience

In a volatile environment marked by tariff uncertainties in the U.S. and weak consumer sentiment, Danone’s increased focus on health and science has helped make the business more resilient, he added.

Still, U.S. coffee creamer producers faced strong competitive pressures, and Danone experienced supply chain issues earlier in the quarter—challenges that have now been resolved, said CFO Juergen Esser in a briefing with reporters.

The company reaffirmed its full-year 2025 forecast, which is aligned with its mid-term objective of 3% to 5% like-for-like sales growth, with recurring operating income growing faster than sales.