Feb 22, 2024
Danone Sales Meet Forecasts As Yogurt Maker Raises Profitability
Bloomberg News
,![Bottles of Evian water move along the production line at the new Evian mineral water bottling plant, owned by Danone SA, near Evian, France, on Tuesday, Sept. 12, 2017. Evian aims to become the first major spring water brand to go carbon neutral amid criticism that packaging water from the French Alps and transporting it around the world in plastic bottles causes unnecessary environmental damage. Photographer: Stefan Wermuth/Bloomberg, Bloomberg Bottles of Evian water move along the production line at the new Evian mineral water bottling plant, owned by Danone SA, near Evian, France, on Tuesday, Sept. 12, 2017. Evian aims to become the first major spring water brand to go carbon neutral amid criticism that packaging water from the French Alps and transporting it around the world in plastic bottles causes unnecessary environmental damage. Photographer: Stefan Wermuth/Bloomberg](/polopoly_fs/1.2037752.1708584626!/fileimage/httpImage/image.jpg_gen/derivatives/landscape_620/bottles-of-evian-water-move-along-the-production-line-at-the-new-evian-mineral-water-bottling-plant-owned-by-danone-sa-near-evian-france-on-tuesday-sept-12-2017-evian-aims-to-become-the-first-major-spring-water-brand-to-go-carbon-neutral-amid-criticism-that-packaging-water-from-the-french-alps-and-transporting-it-around-the-world-in-plastic-bottles-causes-unnecessary-environmental-damage-photographer-stefan-wermuth-bloomberg.jpg)
(Bloomberg) -- Danone’s sales rose in line with expectations as the yogurt maker grew volumes.
Sales grew 5% in the final quarter of 2023, in line with analysts’ expectations and with positive volume and mix — a measure of consumers choosing more expensive formats.
Its biggest unit — which makes dairy and plant-based substitutes - posted the slowest quarterly growth since 2022 amid lower inflation.
After a period of the highest inflation seen in decades, consumer goods producers are looking to grow volumes and claw back market share they lost to supermarket brands as shoppers traded down.
In his third year as chief executive officer, Antoine de Saint-Affrique is trying to show progress in his turnaround.
The company confirmed its mid-term guidance of growth between 3% and 5% for 2024, with a moderate improvement in profitability.
Danone expanded its margin from operations — a measure of gross margin — by 140 basis points in 2023. Pricing and volume helped drive the increase and may open the dairy maker to accusations of increasing prices more than it needed to.
(Updates to add details throughout the story.)
©2024 Bloomberg L.P.