Home / Market Update / Forex Market / Danone eyes better margins in 2023, Q4 sales top estimates

Danone eyes better margins in 2023, Q4 sales top estimates

Shares in Danone SA rose on Wednesday after the French food products group reported better-than-expected fourth quarter sales that were fueled by higher prices.

Total sales during the three months to the end of December jumped by 12% on a reported basis to €7.01B (€1 = $1.0644), mainly driven by stronger pricing and positive foreign exchange effects that helped offset a decline in volumes. Bloomberg consensus forecasts had seen the number at €6.96B.

Danone’s move to make items more expensive comes as the maker of brands like Activia yogurts and Font Vella water faces a steep recent uptick in input costs. The elevated expenses weighed on recurring operating income in 2022, but the figure still inched up by 1.2% year-on-year to €3.38B, beating estimates.

“While 2022 was a year of unprecedented external challenges and volatility, for Danone it has also been a year of deep transformation and solid delivery,” said chief executive Antoine de Saint-Affrique in a statement.

Check Also

RBA

RBA Holds Rates Steady, Signals Prolonged Tight Monetary Policy Amid Persistent Inflation

The Reserve Bank of Australia (RBA) maintained its benchmark interest rate at 4.35% on Tuesday, …