Sales Forecast: Danone, the French food company, is expected to announce sales of 14.17 billion euros ($15.78 billion) for the first half of the year, compared to EUR13.33 billion from the previous year. Sales for the second quarter are estimated to be EUR7.21 billion, up from EUR7.07 billion in the same quarter last year.
Net Recurring Income Forecast: Analysts predict that the net recurring income for the first half of the year will reach EUR1.07 billion, a slight increase from EUR1.05 billion in the same period last year.
Key Points to Watch:
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Organic Growth: Danone is projected to achieve organic sales growth of 7.9% for the first half of the year and 5.6% for the second quarter. These estimates have been provided by the company.
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EDP Business: According to a note from Jefferies analysts, volumes in Danone’s essential dairy and plant-based business are expected to remain negative in the second quarter. Nielsen data suggests that European volumes have improved slightly in recent months, but North American volumes have declined by 5%. Danone has also faced tough competition, leading to significant share losses in its plant-based dairy products.
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Portfolio Management: Market observers are eagerly awaiting more information on Danone’s portfolio-related actions. This includes the planned transfer of control of Danone’s essential dairy and plant-based business in Russia, as well as a strategic review of its Horizon organic milk brand in the U.S. Additionally, investors are interested in the progress of Danone’s 10% net sales portfolio rotation plan.
