Advertisement

Danone Q4 sales top estimates as prices jump

STORY: Danone's fourth-quarter sales came in above forecasts on Wednesday (February 22).

The owner of Evian water and Activia yogurt reported sales growth of 7%.

Danone put the strong performance down to higher prices for its products.

That was brought on by soaring raw material and energy costs.

But those rising expenses also weighed on Danone's full-year operating margin.

It dropped to 12.2% of sales compared with 13.7% a year earlier.

Danone is currently implementing a revival plan.

All while it faces rising input costs and uncertainty caused by Moscow's invasion of Ukraine.

That led the world's biggest yoghurt maker to lose control of its dairy food business in Russia.

Danone and its rivals have raised prices to cope with surging costs.

But the companies face a challenge with how far they can push prices before consumers decide they won't spend.

Danone shares were up around 3% by lunchtime on Wednesday.