BNPP Exane View With Q2 vols meaningfully ahead of expectations notwithstanding a weak Waters showing, we believe that there is enough here to warrant a positive share price reaction. We call the stock +1-2%. Headline figures . Q2 LFL: +4.1% (co. cons: +3.8%; Bbg cons: +3.8%) . Q2 Price: +1.0% (co. cons: +1.4%; Bbg cons: +1.4%) . Q2 Vol: +3.2% (co. cons: +2.5%; Bbg cons: +2.4%) . H1 EBIT mgn. YOY: +0.5% (co. cons: +0.4%; Bbg cons: +0.4%) . H1 EBIT: EUR1,811m (+0.6% vs. co. cons; +0.4% vs. Bbg cons) . H1 EPS (fd): EUR1.91 (+4.4% vs. co. cons; +4.1% vs. Bbg cons) Q2 top-line drivers Scanning the top-line drivers by division, we note that Waters with -0.5% LFL (vol/mix -0.5%) is materially below Bbg consensus expectations (+3.5%), with Danone making reference to adverse weather conditions in Mexico (which is no great surprise given recent beverage peer reporting). This has been more than compensated for by SN with +8.7% LFL sales growth coming materially ahead of Bbg consensus (+5.3%). Danone makes reference to DD growth in SN in CNAO. H1 bottom-line drivers The +49bp H1 EBIT margin reflects +139bp margin from operations and -92p of reinvestment in AandP, product superiority and capabilities. Overheads were -17bp and other effects (FX, scope) were +19bp. Other . FCF: EUR1,172m (note: co. cons FCF: EUR1,205m); . ND: EUR9.1bn Outlook / Guidance (unchanged) . LFL: between +3-5% (note: co. cons: +4.0%) . EBIT margin: recurring operating income growing faster than sales (note: co. cons: +40bp YOY) Likely revisions of consensus We expect to see modest upward pressure to FY25 consensus EBIT. Sector read across Limited: the notable Swiss peer has already reported. Conference call details Today at 08:00 CET / 7.00 UKT. For the webcast: Click here. Dial-in: Click here