The company’s brands include Aptamil, Karicare and Souvenaid, along with a suite of specialised nutrition products.
The strong result was despite high raw milk prices, which usually act as a headwind for dairy company profitability.
Danone NZ country manager Steve Donnelly recently told BusinessDesk the company is building a new manufacturing line at its Auckland plant, adding about 20% capacity.
“And we have room to grow in our existing capacity as well. We are setting up for the next three to four years with that investment.”
Donnelly told BusinessDesk that Danone’s NZ sales were growing at 10-15% annually, driven primarily by China, with Vietnam and Indonesia also strong.
“The global early-life nutrition market is growing at mid- to high-single digits annually, and NZ is well-positioned to grow its share,” he said.
New Zealand’s infant formula exports have quadrupled in value over the past decade, now surpassing $2b annually, making up about 15% of the global export market, according to United Nations trade data.
NZ trade data shows infant formula exports reached $720m in the first four months of 2025, putting the country on track for a record-breaking year.
Danone’s result comes at a time of improved earnings for New Zealand’s biggest dairy company, Fonterra.
In March, Fonterra reported an 8% lift in first-half net profit to $729m and increased its interim dividend.
The co-op’s operating profit rose by 16% to $1.1b.
Fonterra announced a 22 cents per share dividend, compared with 15c in the previous comparable period.
Fonterra’s Ingredients business was a highlight over the half – sales volume fell by 3.9% but operating profit was up by $229m to $696m, reflecting better margins and improved product mix.
The co-op expects to report an improved result for the full year.
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.
