DANONE: 2025: Another year of strong delivery

2025 Full-Year Results
Press release – Paris, February 20, 2026 at 7:30am CET

2025: Another year of strong delivery

¹

Antoine de Saint-Affrique: CEO statement

In 2025, we again delivered broad‑based, quality growth, reaffirming the strength and resilience of our health‑focused portfolio. Like‑for‑like sales grew +4.5%, driven by positive volume/mix and supported by our multi-engine growth model.

All categories and geographies contributed, with strong momentum in China, North Asia & Oceania, and sustained progress in Europe. We continued to perform, expand our recurring operating margin, improve ROIC and generate strong free cash flow, while transforming the company and reinvesting in capabilities, science, and innovation.

As we advance Chapter 2 of Renew Danone, we are reshaping our portfolio: scaling U.S. Medical Nutrition, strengthening our dairy strongholds, advancing microbiome science, and accelerating digitalization. Yet we remain clear-eyed: there is more to do and some areas still require further progress.

Looking ahead to 2026, in a world that remains volatile, we remain disciplined and fully committed to our science-based and consumer and patient centric approach. We enter the year with confidence, aligned with the mid-term ambition we have set out.

I. FOURTH QUARTER AND FULL-YEAR RESULTS

Fourth quarter and full-year sales

In Q4 2025, sales stood at €6,684m, up +4.7% LFL, with an increase of +2.5% from volume/mix and +2.1% from price. On a reported basis, sales decreased by -0.5%, negatively impacted by forex and others
(-6.3%), mainly reflecting the depreciation of several currencies against the euro, notably the US dollar, the Argentine peso and the Chinese renminbi. In addition, scope (+0.8%) and hyperinflation (+0.4%) both contributed positively to reported sales.

In 2025, sales stood at €27,283m, up +4.5% LFL, led by an increase of +2.7% from volume/mix and +1.8% from price. On a reported basis, sales were broadly stable (-0.3%), mainly due to the negative impact from forex and others
(-5.0%), while hyperinflation contributed positively (+0.6%) and scope negatively (-0.4%).

Sales by operating segment

Europe delivered sustained momentum in Q4 2025 with the 9^th consecutive quarter of positive volume/mix; sales were up +2.5% LFL, with volume/mix at +1.0% and price at +1.5%. EDP continued its progress with double-digit growth in High-Protein and Activia returned to growth across the region. Specialized Nutrition was driven by strong performance in Adult Medical Nutrition while momentum was also strong in Waters.

In North America, Q4 sales were up +0.7% LFL, with volume/mix down -0.5% and price up +1.3%. In EDP, High-Protein continued to grow at a double-digit pace, while the rest of the yogurt portfolio remains work in progress. Coffee Creamers are progressively regaining competitiveness, with innovation launched in the “clean label” segment during the period, while STōK cold brew coffee brand is thriving. Specialized Nutrition delivered a strong performance, from both Kate Farms and the legacy Nutricia businesses.

China, North Asia & Oceania delivered another quarter of strong growth in Q4, with sales up +10.4% LFL, led by volume/mix at +10.6%, with price at -0.2%. Specialized Nutrition continued to grow strongly, equally driven by Infant Milk Formula and Medical Nutrition. EDP delivered a remarkable performance in Japan, led by functional brands Activia (Bio) and Oikos. In Waters, the team began preparations for the 2026 season after a solid 2025.

Latin America delivered strong LFL sales growth of +8.3% in Q4, with volume/mix at +0.1% and price at +8.2%. EDP posted strong competitive growth across the region, supported by the Danone brand and High Protein platforms. Specialized Nutrition maintained strong momentum, driven by double‑digit growth in Aptamil and a solid contribution from the Medical Nutrition portfolio. In Waters, performance returned to growth after a challenging 2025 season, which was impacted by adverse weather.

In Asia, Middle East & Africa (AMEA), Q4 sales increased by +8.3% LFL, led by volume/mix at +5.5% and price up +2.8%. Dairy Africa benefited from a sustained momentum with positive volume/mix. Specialized Nutrition delivered double-digit growth, driven by good performance of Aptamil across geographies, including strong competitive growth in India.

Sales by geography by category

Recurring operating margin

Danone posted recurring operating income of €3,665m in 2025. Recurring operating margin stood at 13.4%, up +44 bps compared to last year. This increase was mainly led by the improvement in margin from operations (+77 bps). Danone continued to reinvest in A&P, product superiority and capabilities for -59 bps. Finally, Overheads before reinvestments had a relatively neutral impact (-3 bps), while Other effects had a combined impact of +29 bps, mainly related to IAS 29.

Net income and Earnings per share

Recurring EPS increased by +4.6% to €3.80, mostly driven by strong operational performance.

Non-recurring operating income and expense reached -€725 million in 2025, including one-off costs related to transformation projects, mainly in Europe and Indonesia, and the impairment of intangible assets. This compares to -€179 million in 2024, which included the gains on disposal related to EDP business in Russia, Horizon Organic and Wallaby, and Michel & Augustin. As a result, Reported EPS stood at €2.82 in 2025, down -10.1%.
Cash flow and Debt

Free cash flow reached €2,799 million in 2025, compared to the record level of €3,003 million in 2024. Capex increased by €132 million compared to last year, at -€1,055 million. Working Capital stood at a record -10.2% of sales (163bps improvement) and change in working capital contributed positively to free cash flow generation (+€276 million) although to a lower extent than the exceptional 2024 contribution (+€534 million).

As of December 31, 2025, Danone’s net debt stood at €8.4 billion, improving from €8.6 billion last year, reflecting mainly the strong free cash flow generation.

Dividend

At the Annual Shareholders’ Meeting on April 23, 2026, Danone’s Board of Directors will propose a dividend of €2.25 per share in respect of the 2025 fiscal year, up +4.7% compared to previous year. Assuming this proposal is approved, the ex-dividend date will be May 4, 2026, and the dividend will be payable on May 6, 2026.

II. RECENT DEVELOPMENTS IN INFANT FORMULA

Danone stands for quality and food safety, and its absolute priority is to ensure that parents and healthcare professionals continue to place their trust in its brands.

Danone always takes action to comply with new requirements.

In light of the sector situation, the requirements of national food safety authorities continue to evolve. As a responsible manufacturer and to abide by this ongoing evolution, Danone has been recalling, from relevant markets, batches of infant formula products.

Whilst recall processes are underway in coordination with authorities, the current financial impacts identified are not material. Impact assessment will be finalized once the recalls have been completed.

III. 2026 GUIDANCE

2026 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.

IV. RECENT MAJOR DEVELOPMENTS

• February 12, 2026: Danone acquired an additional 1% stake in its Australian Dairy joint-venture with Saputo after exercising its call option, bringing its ownership up to 51%. This will result in the financial consolidation of this business.

• January 23, 2026: In context of evolving authorities’ guidance, Danone announced targeted recall of specific infant formula batches.

• January 8, 2026: Danone has been recognized on the CDP ‘Triple A’ List for 2025, underscoring its leadership in corporate transparency and performance on climate change, water stewardship, and forest preservation. This achievement reflects Danone’s commitment to rigorous disclosure and verified action on environmental topics.

• December 17, 2025: As part of the simplification of its corporate structure, Danone SA purchased all 5,780,005 of its own shares previously held by its Spanish subsidiary, Danone Spain. This transaction has no impact on the total Danone shares held by the Group.

• December 4, 2025: To offset the dilutive impact of its annual employee shareholder plans, Danone launched a buyback of 3.8 million shares, which was completed on December 18, 2025.

• November 25, 2025: Danone officially achieved B Corp™ certification worldwide, becoming a global leader in B Corp™ certification at scale. With more than 200 legal Danone entities now certified in over 60 countries, Danone employees represent around 9% of the global B Corp™ movement workforce.

V. SHAREHOLDERS’ MEETING AND FINANCIAL STATEMENTS

At its meeting on February 19, 2026, the Board of Directors approved the draft resolutions that will be submitted to the approval of the Shareholders’ Meeting on April 23, 2026. In particular, the Board proposes that shareholders renew the term of office of Gilles Schnepp, Valérie Chapoulaud-Floquet and Sanjiv Mehta as Directors, whose current term of office will expire at the next Shareholders’ Meeting. It will also submit to the Shareholder’s Meeting resolutions, notably on the compensation of corporate officers, on share buy-backs and on employees share capital increases.

At its meeting on February 19, 2026, the Board of Directors approved the statutory and consolidated financial statements for the 2025 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.

Breakdown by quarter of FY 2025 sales after application of IAS 29
FY 2025 sales correspond to the addition of:

• Q4 2025 reported sales;

• Q1, Q2 and Q3 2025 sales resulting from the application of IAS 29 until December 31, 2025, to sales of entities in hyperinflationary countries (application of the inflation rate until December 31, 2025, and translation into euros using the December 31, 2025, closing rate) and provided in the table below for information (unaudited data)

¹Results from the application of IAS 29 until December 31, 2025, to Q1 sales of entities of hyperinflationary countries.
²Results from the application of IAS 29 until December 31, 2025, to Q2 sales of entities of hyperinflationary countries.
³Results from the application of IAS 29 until December 31, 2025, 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.

Asia, Middle East & Africa (AMEA) refers to Asia, Middle East including Turkey, Africa and CIS (zone previously called “Rest of the World”)

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

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;

• under IAS 36, 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.

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.

¹ Represents acquisition costs related to acquisitions of companies resulting in control that were paid during the period

Working capital is defined as the net position between Current assets and Current liabilities. It reflects the resources required to finance the operating cycle, which corresponds to the average time between the acquisition of materials or services entering the production process and the final cash realization in accordance with IAS 1. Current assets mainly include items such as trade receivable and inventories, while Current liabilities mainly comprise trade payable, accrued expenses, and payroll‑related payables.

¹ Fair value of derivatives used to hedge operating currency and commodity risks, most of which are set up for a period of less than one year.
² Except Other current provisions.

Working capital/Sales ratio corresponds to the ratio of Working capital to Sales. It measures the level of resources invested in the operating cycle relative to the volume of activity achieved.

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.

¹ Managing net debt only

The net debt/EBITDA ratio corresponds to the ratio of net debt to operating income restated for depreciation, amortization and impairment of tangible and intangible assets. The ratio for 2025 fiscal year is 2.0x:

ROIC is the ratio of net operating income in the current year to average capital invested in the current and prior years.

Invested capital = goodwill and other tangible and intangible assets + investments in non-consolidated companies and other financial investments + assets held for sale net of liabilities + working capital requirements - provisions and other net liabilities.

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FORWARD-LOOKING STATEMENTS

This press release contains certain forward-looking statements concerning Danone that are subject to risks and uncertainties. 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, or by using future dates. Forward looking statements in this document include, but are not limited to, predictions of future activities, operations, direction, performance and results of Danone.

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 Factors” 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

Disclaimer: This press release presents the results for the full year 2025 from the consolidated financial statements of Danone as of December 31, 2025 (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)

Consolidated balance sheet (unaudited)

Consolidated statement of cash flows (unaudited)

All references in this document to Like-for-like (LFL) changes, Recurring operating income and margin, Margin from operations, Non-recurring operating income and expenses, Recurring net income, Recurring income tax rate, Recurring EPS, Free cash flow, Net financial debt, ROIC, Net debt/EBITDA ratio and Working capital/sales ratio 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 11.

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