February 20th, 2026

The call presented a predominately positive operational and financial performance for FY25: like-for-like sales growth (+4.5%), margin expansion (+44 bps to 13.4%), EPS growth (+4.6% to EUR 3.80), strong free cash flow (EUR 2.8bn) and improved ROIC (10.7%). Strategic highlights included platform scale-ups (Oikos PRO, Alpro), Medical Nutrition M&A (Kate Farms ~ $500m), sustainability milestones (B Corp, CDP Triple A) and supply-chain recognition. Against this backdrop, notable near-term challenges were the Infant Milk Formula recalls (estimated one-off Q1 sales impact ~0.5%–1.0%), North American underperformance, currency headwinds and some H2 margin phasing pressures from ingredient inflation. Management framed these as addressable (targeted investments, leadership changes, capacity expansion and confidence in FY26 guidance). Overall, positives (broad-based growth, cash generation, strategic milestones) outweigh the lowlights, which are significant but largely short- to medium-term in nature.

Company Guidance

Danone guided 2026 net sales like‑for‑like growth of +3% to +5% with recurring operating income expected to grow faster than sales, while flagging a one‑off Q1 sales headwind of ~0.5–1.0% (50–100 bps) from Infant Milk Formula recalls that management expects to normalize through March; they expect North America recovery to pick up from Q2 (easier coffee‑creamer comps) and plan to include Kate Farms in like‑for‑like from Q3. Capital deployment will modestly step up to support capacity (CapEx around 4–4.5% of sales), the board will propose a dividend of EUR 2.25 per share (~+5%), and management reiterated the ambition to keep ROIC sustainably in double‑digit territory (ROIC was 10.7% in 2025). This guidance is set against FY25 results of +4.5% LFL sales (volume/mix +2.7%, price +1.8%), recurring operating margin up 44 bps to 13.4%, recurring EPS EUR 3.80 (+4.6%), and EUR 2.8bn free cash flow.