Danone’s Q4 sales were better than expected, and the company plans to grow profitably by 2023.
(Reuters) – PARISIn the last quarter of 2022, Danone had sales growth of 7%, which was better than expected. This was because it was able to raise prices despite rising costs for raw materials and energy, which hurt its operating margin for the whole year.
Danone, which makes more yoghurt than any other company in the world, said in a statement that its forecast for 2023 was in line with its mid-term goals of between 3% and 5% growth in like-for-like sales and a moderate improvement in recurring operating margin.
The company that owns Activia yoghurt and Evian bottled water said that like-for-like sales grew by 7.8% for the full year of 2022. This was close to the upper end of the 7% to 8% sales growth range that the company had predicted.
Danone’s sales grew by 7% in the fourth quarter, which was better than the 6.2% growth that the market was expecting. All three of its businesses, Essential Dairy and Plant-Based, Specialized Nutrition, and Waters (NYSE:WAT)—contributed to this growth.
The operating margin for the full year of 2022 fell from 13.7% of sales in 2021 to 12.2% of sales in 2022. This was mostly what was expected. This was because of rising prices and the costs of brand investments in the second half of the year.