Danone: Strong full-year results; Consistently delivering on Renew Danone
2023 Full-Year Results
Press release – Paris, February 22, 2024
Strong full-year results
Consistently delivering on Renew Danone
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2023 Full-Year Key Figures |
in millions of euros except if stated otherwise | FY 2022 | FY 2023 | Reported Change | Like-for-like |
Sales | 27,661 | 27,619 | -0.2% | +7.0% |
Recurring operating income | 3,377 | 3,481 | +3.1% |
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Recurring operating margin | 12.2% | 12.6% | +40 bps |
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Non-recurring operating income and expenses | (1,234) | (1,438) | (205) |
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Operating income | 2,143 | 2,042 | -4.7% |
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Operating margin | 7.7% | 7.4% | -35 bps |
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Recurring net income – Group share | 2,205 | 2,283 | +3.5% |
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Non-recurring net income – Group share | (1,246) | (1,402) | (156) |
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Net income – Group share | 959 | 881 | -8.1% |
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Recurring EPS (€) | 3.43 | 3.54 | +3.4% |
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EPS (€) | 1.48 | 1.36 | -8.0% |
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Free cash flow | 2,127 | 2,633 | +23.8% |
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Cash flow from operating activities | 2,964 | 3,442 | +16.1% |
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1
Antoine de Saint-Affrique: CEO statement
2023 was a year of consistent progress and strong delivery against our Renew Danone agenda. We put science back at the heart of what we do and further tied sustainability to business performance. We made significant progress in sharpening our portfolio. We further invested behind our brands, our innovations and our capabilities, progressively improving the quality of our growth, while creating value for all stakeholders.
In a context which remains challenging, the progressive improvement of our volume-mix, turning positive in Q4, the visible progress made by EDP Europe, and the continued strong momentum of our Medical Nutrition activity are encouraging signs, even if lots remains to be done.
Building on the positive momentum of 2023, we are starting this new financial year with confidence in our Renew strategy. We will continue to focus on consistent execution and delivery, in line with the mid-term ambition we defined in March 2022. We will keep progressively improving the resilience of Danone, further equipping it with the skills, science and tools it needs to be future fit. As we start projecting ourselves, we look forward to hosting a Capital Market Event in June 2024.
I. FOURTH QUARTER AND FULL-YEAR RESULTS
Fourth quarter and full-year sales
In Q4 2023, consolidated sales stood at €6.7 bn, up +5.1% on a like-for-like basis, led by an increase of +4.3% from price and +0.8% from volume/mix. On a reported basis, sales decreased by -5.0%, mainly penalized by the strong negative impact from forex (-6.0%), reflecting the depreciation of the majority of currencies against the euro. Reported sales were also penalized by a negative effect from scope (-5.8%), mainly resulting from the deconsolidation of EDP Russia starting from July 2023. Besides, hyperinflation contributed positively to reported sales (+2.8%).
In 2023, consolidated sales stood at €27.6 bn, up +7.0% on a like-for-like basis, with price up +7.4% and volume/mix down -0.4%. On a reported basis, sales decreased by -0.2%, reflecting notably a negative impact from forex (-4.3%) and scope (-3.4%), and a positive contribution of hyperinflation (+1.8%).
Sales by operating segment
€ million except % | Q4 2022 | Q4 | Reported change | LFL Sales | Volume/Mix Growth | FY | FY | Reported change | LFL Sales | Volume/Mix |
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BY GEOGRAPHICAL ZONE |
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Europe | 2,169 | 2,313 | +6.6% | +6.0% | +0.3% | 8,871 | 9,382 | +5.8% | +5.9% | -3.3% |
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North America | 1,759 | 1,725 | -2.0% | +3.1% | +2.8% | 6,712 | 6,889 | +2.6% | +5.8% | +0.2% |
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China, North Asia & Oceania | 817 | 822 | +0.6% | +7.4% | +4.8% | 3,428 | 3,496 | +2.0% | +10.1% | +8.6% |
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Latin America | 745 | 704 | -5.5% | +8.1% | -1.3% | 2,805 | 2,794 | -0.4% | +9.8% | -1.3% |
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Rest of the World | 1,517 | 1,092 | -28.0% | +3.5% | -2.9% | 5,846 | 5,058 | -13.5% | +7.2% | -1.8% |
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BY CATEGORY |
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EDP | 3,887 | 3,462 | -11.0% | +4.5% | +2.0% | 14,799 | 14,322 | -3.2% | +6.6% | -1.4% |
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Specialized Nutrition | 2,147 | 2,174 | +1.2% | +4.7% | -1.3% | 8,319 | 8,504 | +2.2% | +6.7% | +0.6% |
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Waters | 972 | 1,019 | +4.9% | +8.5% | +1.5% | 4,543 | 4,793 | +5.5% | +9.1% | +0.8% |
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TOTAL | 7,007 | 6,655 | -5.0% | +5.1% | +0.8% | 27,661 | 27,619 | -0.2% | +7.0% | -0.4% |
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In the fourth quarter, Europe sales were up +6.0% on a like-for-like basis, with price up +5.7% while volume/mix was back to positive territory, at +0.3%. EDP performance continued to improve sequentially, notably led by Actimel, Danone, YoPro and Alpro. Specialized Nutrition delivered resilient growth in a soft category, while Waters posted strong growth, driven by evian, Volvic and Zywiec Zdroj. In North America, sales were up +3.1% on a like-for-like basis, led by volume/mix, up +2.8%, while pricing normalized (+0.3%). The performance was led by Coffee Creations and Yogurts, and in particular by International Delight, Stok and Oikos. China, North Asia & Oceania delivered +7.4% like-for-like sales growth, led by volume/mix up +4.8% and price up +2.6%. In China, Specialized Nutrition maintained its momentum, in both Infant Nutrition and Medical Nutrition, while Mizone is confirming its turnaround, growing double-digits. Besides, EDP registered double-digit growth in Japan, led by Activia and Oikos. In Latin America, sales were up +8.1%, with price up +9.4% and volume/mix down -1.3%. The performance was driven by all geographies and categories, and in particular by Oikos, YoPro and Bonafont. In the Rest of the World, sales increased by +3.5% on a like-for-like basis, with price up +6.4% and volume/mix down -2.9%, notably led by a sustained momentum in Specialized Nutrition across Asia and Middle-East.
Sales by geography by category
Q4 2023 | Europe | North America | China/North Asia/Oceania | AMEA, CIS & Latin America | Total | |||||
Net sales (€m) | LFL sales growth (%) | Net sales (€m) | LFL sales growth (%) | Net sales (€m) | LFL sales growth (%) | Net sales (€m) | LFL sales growth (%) | Net sales (€m) | LFL sales growth (%) | |
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EDP | 1,081 | +5.6% | 1,583 | +3.6% | 89 | +13.1% | 708 | +3.8% | 3,462 | +4.5% |
Specialized Nutrition | 795 | +4.6% | 77 | -8.7% | 652 | +5.7% | 649 | +5.9% | 2,174 | +4.7% |
Waters | 436 | +9.4% | 65 | +7.2% | 80 | +15.7% | 438 | +6.6% | 1,019 | +8.5% |
Total Company | 2,313 | +6.0% | 1,725 | +3.1% | 822 | +7.4% | 1,795 | +5.2% | 6,655 | +5.1% |
FY 2023 | Europe | North America | China/North Asia/Oceania | AMEA, CIS & Latin America | Total | |||||
Net sales (€m) | LFL sales growth (%) | Net sales (€m) | LFL sales growth (%) | Net sales (€m) | LFL sales growth (%) | Net sales (€m) | LFL sales growth (%) | Net sales (€m) | LFL sales growth (%) | |
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EDP | 4,300 | +5.8% | 6,273 | +6.3% | 360 | 15.3% | 3,389 | +7.1% | 14,322 | +6.6% |
Specialized Nutrition | 3,079 | +3.4% | 342 | -6.5% | 2,445 | +8.3% | 2,639 | +11.3% | 8,504 | +6.7% |
Waters | 2,003 | +10.4% | 275 | +13.1% | 692 | +14.1% | 1,824 | +5.5% | 4,793 | +9.1% |
Total Company | 9,382 | +5.9% | 6,889 | +5.8% | 3,496 | +10.1% | 7,852 | +8.1% | 27,619 | +7.0% |
Recurring Operating Margin
Recurring operating profit (€m) and margin (%) | FY 2022 | FY 2023 | Reported | ||||||
€m | Margin (%) | €m | Margin (%) | ||||||
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Europe | 1,084 | 12.2% | 1,076 | 11.5% | -75 bps | ||||
North America | 679 | 10.1% | 699 | 10.1% | +3 bps | ||||
China, North Asia & Oceania | 1,037 | 30.2% | 1,052 | 30.1% | -15 bps | ||||
Latin America | 55 | 1.9% | 123 | 4.4% | +247 bps | ||||
Rest of the World | 522 | 8.9% | 530 | 10.5% | +155 bps | ||||
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EDP | 1,207 | 8.2% | 1,224 | 8.5% | +39 bps | ||||
Specialized Nutrition | 1,799 | 21.6% | 1,772 | 20.8% | -79 bps | ||||
Waters | 370 | 8.2% | 485 | 10.1% | +197 bps | ||||
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Total | 3,377 | 12.2% | 3,481 | 12.6% | +40 bps | ||||
Danone’s recurring operating income reached €3.5 bn in 2023. Recurring operating margin stood at 12.6%, up +40 basis points (bps) compared to last year. This increase was mainly driven by the improvement of the margin from operations, up +142 bps: topline drivers, including volume, mix and price, had a combined impact of c. +590 bps, partially offset by the still strong negative impact of input-cost inflation net of productivity, at c. -450 bps.
Besides, Danone continued to step-up its reinvestments in A&P, product superiority and capabilities, that had a negative effect of -97 bps in 2023. Finally, Scope, Forex and others had a +13 bps positive impact on Recurring operating margin, partially offset by Overheads before reinvestments, that had a negative effect of -18 bps.
Net income and Earnings per share
| FY 2022 | FY 2023 |
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in millions of euros except if stated otherwise | Recurring | Non-recurring | Total |
| Recurring | Non-recurring | Total |
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Recurring operating income | 3,377 |
| 3,377 |
| 3,481 |
| 3,481 |
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Other operating income and expense |
| (1,234) | (1,234) |
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| (1,438) | (1,438) |
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Operating income | 3,377 | (1,234) | 2,143 |
| 3,481 | (1,438) | 2,042 |
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Cost of net debt | (153) |
| (153) |
| (172) |
| (172) |
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Other financial income and expense | (138) | (20) | (158) |
| (135) | (49) | (185) |
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Income before taxes | 3,086 | (1,253) | 1,832 |
| 3,173 | (1,487) | 1,686 |
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Income tax | (841) | 64 | (778) |
| (864) | 95 | (768) |
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Effective tax rate | 27.3% |
| 42.4% |
| 27.2% |
| 45.6% |
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Net income from fully consolidated companies | 2,244 | (1,190) | 1,054 |
| 2,309 | (1,392) | 917 |
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Share of profit (loss) of equity-accounted companies | 31 | (63) | (32) |
| 55 | (19) | 36 |
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Net income | 2,275 | (1,252) | 1,023 |
| 2,364 | (1,411) | 953 |
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• Group share | 2,205 | (1,246) | 959 |
| 2,283 | (1,402) | 881 |
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• Non-controlling interests | 70 | (6) | 64 |
| 81 | (9) | 72 |
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EPS (€) | 3.43 |
| 1.48 |
| 3.54 |
| 1.36 |
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Other operating income and expense reached -€1,438 million in 2023, vs -€1,234 million in the prior year, due to the deconsolidation of EDP Russia and the impairment resulting from the signing of an agreement to sell the organic dairy platform in the US.
Share of profit of equity-accounted companies stood at €36 million, improving from -€32 million last year, which reflected the impairment related to the disposal of the remaining minority investments in Mengniu partnerships. Non-controlling interests stood at €72 million, up from €64 million in 2022.
As a result, Reported EPS decreased by -8.0% to €1.36, while Recurring EPS was up +3.4% to €3.54.
Cash flow and Debt
Free cash flow reached €2,633 million in 2023, increasing from €2,127 million in 2022, reflecting the significant increase in cash-flow from operating activities. Capex stood at €847 million.
As of December 31, 2023, Danone’s net debt stood at €10.2 billion, slightly increasing from €10.1 billion last year. While the company reduced its debt by c. €0.7 billion in 2023, this improvement was offset by the redemption of a c. €0.8 billion hybrid bond which was financed by a bond issuance. This reflects Danone’s continued improvement in the quality of its balance sheet.
Dividend
At the Annual Shareholders’ Meeting on April 25, 2024, Danone’s Board of Directors will propose a dividend of €2.10 per share in respect of the 2023 fiscal year, up +5.0% compared to last year, and back to 2019 record-level. Assuming this proposal is approved, the ex-dividend date will be May 3, 2024, and the dividend will be payable on May 7, 2024.
II. 2024 GUIDANCE
2024 guidance in line with mid-term ambition: Like-for-like sales growth between +3% and +5% with moderate improvement in recurring operating margin.
III. MAJOR DEVELOPMENTS OVER THE PERIOD
November 6, 2023: Danone issued a €800 million bond with a 6-year maturity and a 3.706% coupon. The settlement took place on November 13, 2023, and the bonds are listed on Euronext Paris.
December 20, 2023: Danone published its Climate Transition Plan, detailing its roadmap to reach its 2030 1.5°C science-based targets and setting its pathway to achieve Net-Zero emissions by 2050 across its entire value chain.
January 2, 2024: Danone announced it has signed an agreement to sell its premium organic dairy activity in the U.S. to Platinum Equity, a US-based investment firm. The sale is part of Danone’s portfolio review and asset rotation program the company announced in March 2022, as part of its Renew Danone strategy.
February 6, 2024: Danone has been recognized, for the fifth year in a row, for leadership in corporate transparency and performance in climate change, forests, and water security by global environmental non-profit organization CDP. Out of the 21,000 companies scored in 2023, Danone is one of the only 10 companies that achieved a place on the A List for the three environmental areas covered by CDP: climate change, forest preservation and water security.
IV. SHAREHOLDERS’ MEETING AND FINANCIAL STATEMENTS
At its meeting on February 21, 2024, the Board of Directors approved the draft resolutions that will be submitted to the approval of the Shareholders’ Meeting on April 25. In particular, the Board proposes that shareholders renew the appointments of Gilbert Ghostine and Lise Kingo, whose current term of office will expire on the next Shareholders’ Meeting. It will also submit to the Shareholder’s Meeting resolutions on the compensation of corporate officers, on the appointment of sustainability auditors, on share buy-backs and on employees share capital increases, as well as a resolution proposing to remove from the by-laws the statutory cap on voting rights.
At its meeting on February 21, 2024, the Board of Directors closed statutory and consolidated financial statements for the 2023 fiscal year. Regarding the audit process, the statutory auditors have substantially completed their examination of financial statements as of today.
V. ALTERNATIVE PERFORMANCE MEASURES NOT DEFINED BY IFRS
IAS 29: impact on reported data
Danone has been applying IAS 29 in hyperinflation countries as defined in IFRS. Adoption of IAS 29 in hyperinflationary countries requires its non-monetary assets and liabilities and its income statement to be restated to reflect the changes in the general pricing power of its functional currency, leading to a gain or loss on the net monetary position included in the net income. Moreover, its financial statements are converted into euros using the closing exchange rate of the relevant period.
IAS 29: impact on reported data | Q4 2023 |
| FY 2023 |
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Sales | -52 |
| -198 |
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Sales growth (%) | -0.78% |
| -0.71% |
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Recurring Operating Income |
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| -55 |
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Recurring Net Income – Group share |
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| -64 |
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Breakdown by quarter of FY 2023 sales after application of IAS 29
FY 2023 sales correspond to the addition of:
Q4 2023 reported sales;
Q1, Q2 and Q3 2023 sales resulting from the application of IAS 29 until December 31, 2023, to sales of entities in hyperinflation countries (application of the inflation rate until December 31, 2023, and translation into euros using the December 31, 2023, closing rate) and provided in the table below for information (unaudited data)
€ million | Q1 20231 | Q2 20232 | Q3 20233 | Q4 2023 | FY 2023 |
Europe | 2,248 | 2,429 | 2,392 | 2,313 | 9,382 |
North America | 1,714 | 1,704 | 1,747 | 1,725 | 6,889 |
China, North Asia & Oceania | 824 | 954 | 896 | 822 | 3,496 |
Latin America | 639 | 727 | 724 | 704 | 2,794 |
Rest of the World | 1,480 | 1,392 | 1,095 | 1,092 | 5,058 |
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Total | 6,904 | 7,205 | 6,854 | 6,655 | 27,619 |
1Results from the application of IAS 29 until December 31, 2023, to Q1 sales of entities of hyperinflation countries.
2Results from the application of IAS 29 until December 31, 2023, to Q2 sales of entities of hyperinflation countries.
3Results from the application of IAS 29 until December 31, 2023, to Q3 sales of entities of hyperinflation countries.
Definitions of geographical zones
Europe refers to European countries and Ukraine.
North America includes United States and Canada.
China, North Asia & Oceania includes China, Japan, Australia and New-Zealand.
Latin America includes Mexico, Brazil, Argentina and Uruguay.
Rest of the World includes AMEA (Asia, Middle East including Turkey, Africa) and CIS.
Financial indicators not defined in IFRS
Due to rounding, the sum of values presented may differ from totals as reported. Such differences are not material.
Like-for-like changes in sales reflect Danone's organic performance and essentially exclude the impact of:
changes in consolidation scope, with indicators related to a given fiscal year calculated on the basis of the previous year's scope;
changes in applicable accounting principles;
changes in exchange rates, with both previous-year and current-year indicators calculated using the same exchange rates (the exchange rate used is a projected annual rate determined by Danone for the current year and applied to both previous and current years).
Like-for-like changes in recurring operating margin are not disclosed anymore as the indicator is not constitutive of the company’s guidance nor used by the company to comment the results.
Since January 1st, 2023, all countries with hyperinflationary economies are taken into account in like-for-like changes as follows: net sales growth in excess of around 26% per year (a three-year average at 26% would generally trigger the application of hyperinflationary accounting as defined in IFRS) is now excluded from the like-for-like net sales growth calculation.
Bridge from reported data to like-for-like data
(€ million except %) | FY 2022 | Like-for-like change | Impact of changes | Impact of changes in exchange rates & others incl. IAS 29 | Contribution of hyperinflation | Reported change | FY 2023 |
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Sales | 27,661 | +7.0% | -3.4% | -5.6% | +1.8% | -0.2% | 27,619 |
Margin from operations is defined as the Gross margin over Net sales ratio, where Gross margin corresponds to the difference between Net sales and Industrial costs excluding reengineering initiatives and Logistics / Transportation costs.
Recurring operating income is defined as Danone’s operating income excluding Other operating income and expenses. Other operating income and expenses comprise items that, because of their significant or unusual nature, cannot be viewed as inherent to Danone’s recurring activity and have limited predictive value, thus distorting the assessment of its recurring operating performance and its evolution. These mainly include:
capital gains and losses on disposals of fully consolidated companies;
impairment charges on intangible assets with indefinite useful lives;
costs related to strategic restructurings or transformation plans;
costs related to major external growth transactions;
costs related to major crisis and major litigations;
in connection with IFRS 3 (Revised) and IAS 27 (Revised) relating to business combinations, (i) acquisition costs related to business combinations, (ii) revaluation profit or loss accounted for following a loss of control, and (iii) changes in earn-outs relating to business combinations and subsequent to acquisition date.
Recurring operating margin is defined as the Recurring operating income over Sales ratio.
Other non-recurring financial income and expense corresponds to financial income and expense items that, in view of their significant or unusual nature, cannot be considered as inherent to Danone’s recurring financial management. These mainly include changes in value of non-consolidated interests.
Non-recurring income tax corresponds to income tax on non-recurring items as well as tax income and expense items that, in view of their significant or unusual nature, cannot be considered as inherent to Danone’s recurring performance.
Recurring effective tax rate measures the effective tax rate of Danone’s recurring performance and is computed as the ratio of income tax related to recurring items over recurring net income before tax.
Non-recurring share of profit of equity-accounted companies includes items that, because of their significant or unusual nature, cannot be viewed as inherent to the companies' recurring activity and thereby distort the assessment of their recurring performance and trends in that performance. These items mainly relate to (i) capital gains and losses on disposals of investments in equity-accounted companies, (ii) impairment of goodwill, and (iii) non-recurring items, as defined by Danone, included in the share of profit of equity-accounted companies.
Recurring net income (or Recurring net income – Group Share) corresponds to the Group share of the consolidated Recurring net income. The Recurring net income excludes items that, because of their significant or unusual nature, cannot be viewed as inherent to Danone’s recurring activity and have limited predictive value, thus distorting the assessment of its recurring performance and its evolution. Such non-recurring income and expenses correspond to Other operating income and expenses, Other non-recurring financial income and expenses, Non-recurring income tax, and Non-recurring income from equity-accounted companies. Such income and expenses, excluded from Net income, represent Non-recurring net income.
Recurring EPS (or Recurring net income – Group Share, per share after dilution) is defined as the ratio of Recurring net income adjusted for hybrid financing over Diluted number of shares. In compliance with IFRS, income used to calculate EPS is adjusted for the coupon related to the hybrid financing accrued for the period and presented net of tax.
| FY 2022 |
| FY 2023 |
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Recurring |
| Total |
| Recurring |
| Total |
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Net income-Group share (€ million) | 2,205 |
| 959 |
| 2,283 |
| 881 |
| |
Coupon related to hybrid financing net of tax (€ million) | (13) |
| (13) |
| (8) |
| (8) |
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Number of shares |
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• Before dilution | 639,050,821 |
| 639,050,821 |
| 641,030,818 |
| 641,030,818 |
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• After dilution | 639,484,607 |
| 639,484,607 |
| 641,738,674 |
| 641,738,674 |
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EPS (€) |
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• Before dilution | 3.43 |
| 1.48 |
| 3.55 |
| 1.36 |
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• After dilution | 3.43 |
| 1.48 |
| 3.54 |
| 1.36 |
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Free cash flow represents cash flows provided or used by operating activities less capital expenditure net of disposals and, in connection with IFRS 3 (Revised), relating to business combinations, excluding (i) acquisition costs related to business combinations, and (ii) earn-outs related to business combinations and paid subsequently to acquisition date.
(€ million) | FY 2022 | FY 2023 |
Cash-flow from operating activities | 2,964 | 3,442 |
Capital expenditure | (873) | (847) |
Disposal of tangible assets & transaction fees related to business combinations1 | 37 | 38 |
Free cash-flow | 2,127 | 2,633 |
1 Represents acquisition costs related to business combinations paid during the period.
Net financial debt represents the net debt portion bearing interest. It corresponds to current and non-current financial debt (i) excluding Liabilities related to put options granted to non-controlling interests and earn-outs on acquisitions resulting in control and (ii) net of Cash and cash equivalents, Short term investments and Derivatives – assets managing net debt.
(€ million) | December 31, 2022 | December 31, 2023 |
Non-current financial debt | 11,238 | 10,739 |
Current financial debt | 3,298 | 4,270 |
Short-term investments | (3,631) | (3,638) |
Cash | (1,051) | (2,363) |
Bank Overdraft | 330 | 1,264 |
Derivatives — non-current assets1 | (18) | (34) |
Derivatives — current-assets1 | (60) | (16) |
Net debt | 10,107 | 10,221 |
| (59) | - |
| (263) | (356) |
Net financial debt | 9,785 | 9,865 |
1 Managing net debt only
o o O o o
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements concerning Danone. In some cases, you can identify these forward-looking statements by forward-looking words, such as “estimate”, “expect”, “anticipate”, “project”, “plan”, “intend”, “objective”, “believe”, “forecast”, “guidance”, “foresee”, “likely”, “may”, “should”, “goal”, “target”, “might”, “will”, “could”, “predict”, “continue”, “convinced” and “confident,” the negative or plural of these words and other comparable terminology. Forward looking statements in this document include, but are not limited to, predictions of future activities, operations, direction, performance and results of Danone.
Although Danone believes its expectations are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those anticipated in these forward-looking statements. For a detailed description of these risks and uncertainties, please refer to the “Risk Factor” section of Danone’s Universal Registration Document (the current version of which is available at www.danone.com).
Subject to regulatory requirements, Danone does not undertake to publicly update or revise any of these forward-looking statements. This document does not constitute an offer to sell, or a solicitation of an offer to buy Danone securities.
The presentation to analysts and investors will be broadcast live today from 8:00 a.m. (Paris time)
on Danone’s website (www.danone.com).
Related slides will also be available on the website in the Investors section.
APPENDIX – Sales by geographical zone and by category (in € million)
| First quarter | Second quarter | Third quarter | Fourth quarter | Full year |
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| 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 |
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Europe | 2,142 | 2,248 | 2,289 | 2,429 | 2,270 | 2,392 | 2,169 | 2,313 | 8,871 | 9,382 |
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North America | 1,477 | 1,714 | 1,662 | 1,704 | 1,813 | 1,747 | 1,759 | 1,725 | 6,712 | 6,889 |
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China, North Asia & Oceania | 735 | 824 | 936 | 954 | 940 | 896 | 817 | 822 | 3,428 | 3,496 |
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Latin America | 602 | 689 | 704 | 779 | 757 | 771 | 745 | 704 | 2,805 | 2,794 |
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Rest of the World | 1,280 | 1,486 | 1,476 | 1,369 | 1,555 | 1,100 | 1,517 | 1,092 | 5,846 | 5,058 |
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EDP | 3,365 | 3,768 | 3,684 | 3,731 | 3,862 | 3,474 | 3,887 | 3,462 | 14,799 | 14,322 |
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Specialized Nutrition | 1,919 | 2,143 | 2,106 | 2,142 | 2,134 | 2,070 | 2,147 | 2,174 | 8,319 | 8,504 |
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Waters | 951 | 1,051 | 1,277 | 1,362 | 1,338 | 1,362 | 972 | 1,019 | 4,543 | 4,793 |
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TOTAL | 6,236 | 6,962 | 7,067 | 7,235 | 7,334 | 6,906 | 7,007 | 6,655 | 27,661 | 27,619 |
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| First quarter | Second quarter 2023 | Third quarter | Fourth quarter | Full year |
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| Reported change | Like-for-like change | Reported change | Like-for-like change | Reported change | Like-for-like change | Reported change | Like-for-like change | Reported change | Like-for-like change |
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Europe | +4.9% | +6.2% | +6.1% | +6.5% | +5.4% | +5.1% | +6.6% | +6.0% | +5.8% | +5.9% |
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North America | +16.0% | +11.8% | +2.5% | +5.0% | -3.7% | +3.9% | -2.0% | +3.1% | +2.6% | +5.8% |
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China, North Asia & Oceania | +12.1% | +16.0% | +1.9% | +9.6% | -4.6% | +8.4% | +0.6% | +7.4% | +2.0% | +10.1% |
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Latin America | +14.6% | +12.6% | +10.7% | +10.8% | +2.0% | +8.2% | -5.5% | +8.1% | -0.4% | +9.8% |
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Rest of the World | +16.2% | +11.8% | -7.2% | +3.9% | -29.3% | +9.7% | -28.0% | +3.5% | -13.5% | +7.2% |
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EDP | +12.0% | +9.3% | +1.3% | +6.2% | -10.1% | +6.3% | -11.0% | +4.5% | -3.2% | +6.6% |
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Specialized Nutrition | +11.6% | +12.0% | +1.7% | +4.9% | -3.0% | +5.7% | +1.2% | +4.7% | +2.2% | +6.7% |
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Waters | +10.5% | +12.0% | +6.6% | +9.6% | +1.8% | +7.0% | +4.9% | +8.5% | +5.5% | +9.1% |
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TOTAL | +11.6% | +10.5% | +2.4% | +6.4% | -5.8% | +6.2% | -5.0% | +5.1% | -0.2% | +7.0% |
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All references in this document to Like-for-like (LFL) changes, Recurring operating income and margin, Margin from operations, Recurring net income, Recurring income tax rate, Recurring EPS, Free cash-flow and net financial debt, correspond to alternative performance measures not defined by IFRS. Their definitions, as well as their reconciliation with financial statements, are listed on pages 5 to 8.
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