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Danone SA on Wednesday said 2022 sales rose as profit fell on higher costs, and that guidance for the current year is in line with its midterm targets.
The French food company
BN,
reported net profit of 959 million euros ($1.02 billion) compared with EUR1.92 billion in the previous year. Recurring net income, which excludes exceptional items, came in at EUR2.21 billion, up 1.9% on year.
The recurring operating margin for the year was 12.2%, down 154 basis points compared with the previous year, mainly due to the impact of input-cost inflation net of productivity.
Results were affected by implementation costs related to the “Local First” reorganization plan and an impairment of around EUR500 million related to the company’s essential dairy and plant-based business in Russia, Danone said.
Full-year sales increased 7.8% on a like-for-like basis to EUR27.66 billion, with a 8.7% contribution from price and a negative 0.8% contribution from volume/mix. In the fourth quarter, sales grew 7% organically.
Danone said 2023 guidance is in line with midterm targets of like-for-like sales growth between 3% and 5% with moderate recurring operating margin improvement.
The board of directors will propose a dividend of EUR2 a share for 2022, up 3.1% from the previous year.
Write to Giulia Petroni at giulia.petroni@wsj.com
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