DAVY VIEW

Danone’s Q4 like-for-like (LFL) growth of 4.7% (volume/mix: + 2.5%) was modestly ahead of market expectations and supported by continued strength in Specialised Nutrition and EDP. Recurring operating margin of 13.4% was supported by positive operating leverage, enabling continued reinvestment in brands and capabilities. The FY26 outlook calls for expected LFL sales growth of 3-5%, with recurring operating income growing faster than sales – this is in line with current market expectations. At first look, we envisage limited changes to our current forecasts.