Summary of Q323 sales A strong quarter from Danone with LFL sales growth of +6.2% coming materially ahead of co. consensus expectations (+4.7%). The beat was principally driven by pricing (6.6% vs. co. cons. at +5.4%) which came ahead of (VA) consensus expectations in all divisions and nearly all regions (China, Oceania and North Asia being the only exception). News We highlight that Danone expects to see cost inflation in FY24 and expects that its pricing will be positive. Earnings We make only relatively modest revisions to our FY23e/FY24e/FY25e EPS. Investment thesis While Danone is relatively inexpensive, we have concerns on the sustainability of Chinese infant formula profits and we believe that LFL sales growth in FY24 will likely underwhelm. Rating and target price We maintain our Underperform rating and EUR54 target price. 15 questions for management EDP Europe will clearly benefit from a very depressed comparative in Q4, on an absolute sequential basis are you seeing a material improvement in volumes in this business?