PARIS (Reuters) – Danone reported above forecast 7% like-for-like sales growth in the last quarter of 2022, as it was able to raise prices in the face of soaring raw materials and energy costs, which weighed on its full year operating margin.
Danone, which is the world’s largest yoghurt maker, said in a statement that its guidance for 2023 was in line with its mid-term targets of like-for-like sales growth of between 3% and 5%, with a moderate improvement in recurring operating margin.
The owner of Activia yoghurt and Evian bottled water reported like-for-like sales growth of 7.8% for the 2022 full year, near the top end of its 7% to 8% sales growth guidance.
For the fourth quarter alone, Danone achieved 7% sales growth, which beat market expectations of 6.2% growth, with all three businesses — Essential Dairy and Plant-based, Specialised Nutrition and Waters — making a contribution.
The operating margin for the 2022 full year declined to 12.2% of sales from 13.7% in 2021, broadly in line with expectations. This reflected inflationary pressure and costs related to investments in brands in the second half of the year.
(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)
