By Aimee Look

Danone reported a rise in third-quarter organic sales, fueled by accelerating growth in China that made up for a continued slowdown in North America.

The French food company, which owns brands like Activia yogurt and Evian water, has been riding a strong performance in China in recent quarters. The group's sales in the country, specifically for its specialized nutrition category, are benefiting from regulatory changes and an ageing population.

Danone posted third-quarter sales growth of 4.8% on a like-for-like basis on Tuesday. Analysts had anticipated sales growth of 4.3% for the quarter, according to company-compiled consensus.

It said the sales increase was driven by strong volumes and mix. Volumes rose 3.2%, while prices were up 1.6%.

In the China, North Asia and Oceania region, sales grew 14% on year for the quarter, mainly driven by a sharp increase in sales volumes. Danone said it grew across all categories in the region, with demand for infant milk formula and medical nutrition boosting specialized nutrition sales.

While Danone makes strides in China, its growth in North America continues to stagnate--with like-for-like sales up 1.5% for the quarter compared with 5.8% growth last year during the same period.

The French company said it experienced strong momentum in high-protein sales in North America, but plant-based coffee creamers remained weak. Danone's coffee-creamer business in North America, which has been under pressure lately, is becoming more competitive, it said.

A recovery in the coffee-creamer business in North America might still take some time, analysts at RBC said in a note to clients. But the company still delivered good third-quarter results, with a better-than-expected performance that was mainly driven by soaring growth in the region that includes China, RBC said.

Overall sales for the quarter rose to 6.88 billion euros ($8.01 billion), from 6.83 billion euros the same period last year. Analysts had expected sales for the quarter to be around 6.87 billion euros.

Danone backed its guidance for the full year. The company in July said it expects 3% to 5% like-for-like sales growth for 2025, and that recurring operating income will grow more quickly than sales.

Write to Aimee Look at aimee.look@wsj.com

(END) Dow Jones Newswires

October 28, 2025 04:55 ET (08:55 GMT)

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