Danone's Strategic Acquisitions Drive Growth in Health-Focused Products

Danone, the multinational food and beverage company, has reported a 4.2% increase in like-for-like sales for the second quarter, attributed to sustained demand for essential dairy and plant-based (EDP) products, high protein ranges, and specialized nutrition. First-half sales reached €13.9 billion, a 3.5% increase on a like-for-like basis. The company's strategy is centered around health-focused products, which has been reinforced by recent acquisitions, including the Australian-based Made Group.

CEO Antoine de Saint-Affrique stated, "We are closing a solid first half, demonstrating once again the relevance of our health-focused portfolio and the strength of our multi-engine growth model." The European, Middle Eastern, and African markets showed continued momentum, particularly in functional dairy and Alpro products. Specialised Nutrition also saw improvements, with significant performance recovery in Europe and the Middle East.

Danone's Waters division experienced a positive start to the summer season, with brands like Volvic leading growth. In the Americas, functional yogurts contributed to a robust performance in EDP, while North America witnessed continued strong growth in High Protein and Specialized Nutrition products, including Medical Nutrition. Latin America delivered double-digit growth in infant milk formula.

The Asia-Pacific region also recorded solid growth in Specialized Nutrition, with strong demand for Oikos and Activia in Japan. The Waters division displayed a mix of strong growth led by Aqua in Indonesia and a softer category performance for Mizone in China.

Antoine de Saint-Affrique highlighted the company's focus on enhancing its portfolio through mergers and acquisitions, with agreements to acquire Huel and Made Group. However, Danone's €1 billion bid for Huel is under scrutiny by the UK's Competition and Markets Authority.