Jul 29, 2026 earnings call — Solid H1 results and strategic M&A activity
Confirmed 2026 guidance: like-for-like sales growth of plus 3% to plus 5%.
Revenue $15.9B (est $15.7B) · EPS $0.44 (est $0.43)
Key quotes
"In dairy, high-protein products remain a key growth driver across all regions, from North America to Europe, Latin America and Asia Pacific, growing double digits everywhere."
"You will see the start of it in H2 with Activia. You will see some new formats coming on to Oikos, and more to come in the following year."
"Made will be accretive to both operating margin and EPS from year 1."
Analyst Q&A 8
China volumes and U.S. turnaround timing
Q (Guillaume Gerard Delmas): They asked why CNAO volume mix slowed from Q1 to Q2 and whether CNAO can keep a positive volume mix in the back half. They also asked if the North America turnaround is taking longer and which categories will improve fastest.
A: Management said they are happy with CNAO and confident to keep delivering. The key driver of the volume mix slowdown was Mizone and the waters category, which went down in the quarter. On North America, capacity will be released line-by-line, protein is strong, creamers are stabilizing, and new innovations (Activia, new Oikos formats) will start in H2.
"I mean the key driver of volume mix is Mizone and the waters category." — Antoine de Saint-Affrique (CEO)
North America volumes and China pricing
Q (Nicolas Jerome Ceron · BofA): They asked if yogurt volumes in North America are flat or falling due to capacity constraints. They also asked whether China clinical nutrition is facing pricing pressure linked to volume-based purchasing.
A: Management said everything that is protein in North America shows consistent growth while the rest of the portfolio was under quota and will be reignited as capacity is released. On China medical nutrition they said the market is very exciting, with strong opportunities in tube, pediatrics and oral nutrition. They added that volume-based pricing is not new and for them it is business as usual.
"Listen, on North America, as we said, on everything that is protein, we see a consistent, consistent growth." — Antoine de Saint-Affrique (CEO)
Inventory, CapEx and EDP margin
Q (Jon Cox · Kepler): They asked whether the EUR 250 million inventory build will unwind in H2 and for comments on CapEx and free cash flow. They also asked why the EDP margin was down about 70 basis points year-on-year.
A: Management said they increased security stocks as a precaution because global supply chains, especially through the Middle East, are a bit disrupted; those stocks are temporary and will fade in the quarters to come. They said the rest of free cash flow is strong from operational performance and CapEx is slightly increasing (about EUR 40 million, EUR 50 million in the semester) to support medical nutrition and high protein investments. On EDP margin they said inflation kicked in from the second quarter with a lag to pricing and that they will increase prices selectively in Q3 to rebalance.
"As a precautionary measure, we increased security stocks that will fade away in the quarters to come, so it's really just a very temporary element." — Juergen Esser (CFO)
Protein shakes and emerging markets
Q (David Roux · Morgan Stanley): They asked whether protein shake ambitions will be revisited once additional yogurt capacity comes online. They also asked whether the strength in emerging markets is sustainable or a pull-forward of demand.
A: Management said they will pursue shakes as fast as capacity allows, with priority first to bring back the yogurt business and then accelerate protein shakes; shakes remain sticky in stores even without heavy allocation. On emerging markets they said Danone has a balanced footprint and the performance is consistent and structural, citing countries like Indonesia, Latin America, Morocco and Vietnam and noting specialized nutrition and IMF are driving growth in many markets.
"First priority is bringing back our yogurt business to where it belongs; and second, and really after, we are going to accelerate and press the acceleration button on protein shakes." — Juergen Esser (CFO)
Kate Farms, Mizone, Nuturis launch
Q (Warren Ackerman · Barclays): They asked how fast Kate Farms is growing before like-for-like consolidation, how much Mizone fell in China in Q2, and when Nuturis will launch in China and how it is doing in Hong Kong.
A: Management said Nuturis is doing quite well in Hong Kong and is progressively deploying in Mainland China; it is super premium and targets the top 5% of the market where they were not playing. They said Kate Farms is growing at a very strong pace and will enter like-for-like from Q3. They added Mizone was pretty much down in Q2 in a temporarily very soft category, which pulled down CNAO performance, but market shares are well-oriented.
"Nuturis is doing quite well in Hong Kong, and the launch is progressively deploying in Mainland China as we speak." — Antoine de Saint-Affrique (CEO)
U.S. plant-based and Huel positioning
Q (Jean-Olivier Nicolai · Goldman Sachs): They asked if the U.S. plant-based turnaround is on track and what difficulties remain versus Europe. They also asked how Huel will be positioned versus Alpro and how the two brands complement each other.
A: Management said the U.S. plant-based plan is on track and they are deploying a model similar to Europe's; Silk protein work is a first step and more will come early next year, but activity must lead to impact. On Huel they said it has a different positioning and route to market versus Alpro, with strong direct-to-consumer and community skills (issuing many online assets), so the two brands are complementary rather than directly opposing.
"One of the things that really excites me with Huel is the team excites me." — Antoine de Saint-Affrique (CEO)
China IMF shares and cost inflation outlook
Q (Celine Pannuti · JPMorgan): They asked how China infant milk formula market shares developed in the quarter and whether border scrutiny or supply issues helped them win share. They also asked about cost inflation expectations for the year and whether H2 margins should improve.
A: Management said the market is normalizing and their execution focuses on innovation, premiumization and deep relationships with mothers; they comply with Chinese authority requirements and are doing what is needed for products to be available. They said there was no real supply chain disruption impact in H1 and that Essensis and a shift to premium helped shares. On costs they said energy and packaging are impacted by the Middle East, hedging effectiveness differs by category causing H1/H2 margin phasing, and they will do selective price increases across regions which will benefit EDP margin.
"We will stay true to our business model, which is a quality growth, delivering interesting gross margin and reinvesting while expanding a profit margin." — Juergen Esser (CFO)
Margins, depreciation, and APAC growth
Q (Tom Sykes · Deutsche Bank): They asked why margin from operations was down despite productivity and acquisitions, whether the EUR 100 million fall in depreciation is an impairment, and how APAC specialized nutrition growth breaks down between China IMF and other countries.
A: Management said margin from operations was down due to the IMF recall impacts in Q1 and inflationary pressure with pricing kicking in later; M&A had no material impact and productivity allowed reinvestment. They said APAC specialized nutrition plus 4.4% is driven as much by China as the rest of the region, with about two-thirds of the region's business being specialized nutrition and China IMF contributing well. On D&A they said there is no specific effect and it is a one-off, normal course.
"First, we had the IMF recall impacts, let's not forget that, in Q1." — Juergen Esser (CFO)