Shares of French food giant Danone climbed sharply on Monday after the company posted stronger-than-expected second-quarter sales, buoyed by a resurgence in demand across China and steady performance in its core nutrition and dairy segments.
The company reported a 6.4% increase in like-for-like sales for the April–June period, outpacing analysts’ average estimates of around 5.1%. Danone attributed the strong showing to a sharp rebound in its specialized nutrition business in China, where easing regulatory constraints and recovering consumer confidence have reignited demand for infant formula and health products.
“China was a clear standout this quarter,” said Antoine de Saint-Affrique, Danone’s Chief Executive Officer. “We are seeing positive momentum in key categories, driven by both channel expansion and brand strength.”
Danone’s shares jumped more than 4% in Paris trading following the results, marking one of the best performances on the CAC 40 index.
The Paris-based group, known for brands like Aptamil, Evian, and Actimel, also saw growth in its dairy and plant-based segment, supported by higher prices and resilient consumer spending in Europe and North America. Meanwhile, its water division returned to growth as global travel and hospitality industries continued their post-pandemic recovery.
The upbeat quarter provides a boost for Danone, which has been undergoing a broad strategic reset under de Saint-Affrique. Since taking the helm, the CEO has launched a portfolio review and sharpened the company’s focus on profitable markets and core categories.
“Danone has done a solid job refocusing its strategy and capitalizing on renewed growth in Asia,” said Clara Morel, a consumer goods analyst at BNP Paribas. “China’s rebound, in particular, is a welcome sign after several volatile quarters.”
Looking ahead, Danone reaffirmed its full-year guidance of 4–6% like-for-like sales growth and moderate margin improvement, despite ongoing inflationary pressures and foreign exchange headwinds.
The company also flagged continued investments in product innovation and digital platforms to maintain momentum in emerging markets, especially China now central to its long-term growth ambitions.
With the global consumer landscape still evolving, Danone’s Q2 performance has offered investors a dose of optimism, proving that targeted market bets and disciplined execution can yield solid results even in a complex macroeconomic climate.