In 2024, Danone improved its financial performance thanks to a focus on the scientifically proven benefits of its products, reduced sugar content and the GLP-1 trend. According to Dairy Reporter, the key drivers were protein products, yoghurts for gut health and specialised nutrition.

Danone’s financial results

In 2024, Danone reported:

  • net profit of €2.02 billion (compared with €881 million in 2023);
  • operating profit of €3.4 billion);
  • revenue of €27.4 billion (–0.9% year-on-year);
  • an operating margin of 13%.

The company has also seen a return to positive growth in its volume-mix metric — for the first time since the launch of the Renew Danone strategy in 2022.

Protein and functional foods — the market driver

High-protein dairy products have become one of the key drivers of Danone’s growth. Brands focused on gut health, notably Activia, as well as the medical nutrition segment, have also made a significant contribution.

“We are seeing a broader trend towards an active lifestyle, which is driving demand for protein and products that support gut health,” said Danone CEO Antoine de Saint-Affrique.

In Europe, the high-protein products segment has shown double-digit growth, driven in particular by products marketed for muscle recovery and new ranges of kefir.

The impact of GLP-1 and health trends

Danone is actively capitalising on trends related to weight management and diabetes. In the US, the company has received FDA approval for a science-based claim stating that consuming yoghurt may reduce the risk of developing type 2 diabetes.

This has led to an increase in demand for yoghurts, particularly those with reduced sugar content.

“We are seeing a clear rise in yoghurt consumption among consumers looking for products with lower sugar content,” emphasised Antoine de Saint-Affrique.

In addition, the company targets consumers who use weight-loss medications (GLP-1), offering products that are high in protein and nutritional value.

Baby food and specialised nutrition

The specialist nutrition segment also saw growth: sales rose by 5.1% and reached almost €9 billion.

The main driver has been ultra-premium infant formula, which is rapidly increasing its market share, particularly in China.

Plant-based products and the European market

In the plant-based alternatives segment, the Alpro brand is showing steady growth in Europe. The company plans to draw on this experience to develop the Silk brand in North America.

Conclusion

Danone is strengthening its position in the dairy market by combining science, functional nutrition and global trends in healthy living. Protein, reduced sugar content and demand from weight-conscious consumers are becoming key drivers of growth in the dairy sector.

Джерело: DairyReporter