By Adria Calatayud

Danone is scheduled to report results for the first quarter on Wednesday. Here is what you need to know.

SALES FORECAST: The French food company behind Activia yogurt and Evian water is expected to report net sales of 6.85 billion euros ($7.89 billion) for the first quarter, up 3.8% on a like-for-like basis and up 0.8% in reported terms, according to consensus estimates compiled by the company and based on estimates by 18 analysts.

Shares in Danone climbed 8.8% during the first quarter and the stock continued to rise despite a market selloff triggered by President Trump's tariff plans in early April. The stock has gained nearly 13% since the start of the year.

WHAT TO WATCH

--TARIFFS: Danone's generally localized business provides a relative advantage in the current environment given that it prevents a meaningful exposure to U.S. tariff risks, Stifel analyst wrote in a note to clients. The U.S. accounts for about a fifth of the company's sales.

--OUTLOOK: The company expects like-for-like sales growth of between 3% and 5% this year, with recurring operating profit--its preferred earnings metric--growing faster than sales. Danone likely made a reassuring start to the year, helped by strong momentum in its specialized nutrition segment, analysts at UBS said. If Danone meets estimates for the first quarter, its organic sales growth would be ahead of those by peers Nestle, Unilever, Reckitt Benckiser and Haleon, analysts at Jefferies said. However, sales growth in the U.S. creamer market is stalling and promotional activity in the Chinese nutrition market is stepping up, Jefferies added.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

April 22, 2025 10:00 ET (14:00 GMT)

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