First Read Danone Off the call (2Q26)

Research evidence excerpt

First Read Danone Off the call (2Q26)

ovation and premiumisation, emphasising

health benefits. Have not seen any supply chain disruption in H1. China Nuturis

launch: Nuturis doing quite well in Hong Kong, and is progressively launching across

mainland China. It is a niche product in China, targetting the top 5% of the market

(where only one local player as operating).

Emerging markets: Performance in EMs has been quite consistent over time, in

aggregate. In Indonesia, offering value at every price point, the consumer there under

pressure for a long time; delivered a solid performance. A lot of growth now coming

through Specialised Nutrition, BN gaining scale in IMF (e.g. Brazil, India, Vietnam).

EMEA IMF: Progressive recovery, starting in mid-2nd quarter. Back to a normal situation

in terms of presence on shelf. Focus on rebuilding trust in the category; engaging closely

with medical health professionals, showcasing extensive testing, in Q3, new campaign

to support these efforts. Expect the market continuously normalise throughout the year.

Middle East saw a fast catch-up. Europe saw a normalising of on-shelf capability yet the

start of Q2 was still affected by the IMF recall.

Yoghurt: Comprehensive innovation roadmap ahead, reactivating Activia by leveraging

successful learnings from Japan on functional claims, and Europe on fibre-based

innovation. Expanding presence in everyday Greek yoghurt and tubs with Oikos.

Free cash flow: Took decision to increase safety stocks internally given global supply

chains are a bit disrupted, but these will fade away over the following quarters. Capex

increased slightly (€40-50mn in H1 due to Medical Nutrition and High Protein).

EDP margins: Margin declined due to inflation hitting the P&L in Q2, but taking price to