Danone Earnings: 2023 a Solid Recovery Year With Confident Outlook

Danone reported fourth-quarter sales and fiscal 2023 results that included like-for-like sales up 5.1% and 7%, respectively, broadly in line with company-compiled consensus but ahead of our estimates (up 6%). Within this, in fiscal 2023, volume/mix was down 0.4%, in line with consensus, while pricing was up 6.6%. This closes a solid recovery year for Danone, with volumes/mix holding up surprisingly well, driven by impressive sequential improvements in the group's largest business, EDP—essential dairy and plant-based products—to positive 2% in the fourth quarter from negative 0.8% in the third quarter, negative 3.3% in the second and first quarters.