Danone 2023 Profit Fell; 2024 Guidance in Line With Midterm Targets

By Kimberley Kao

Danone reported a fall in full-year profit and sales while saying guidance for 2024 remains in line with its mid-term targets.

The French food company said Thursday that 2023 net profit was 881 million euros ($953.1 million) compared with EUR959 million in the previous year. Recurring net income, which excludes exceptional items, was EUR2.28 billion, up 3.5% compared with the same period a year earlier.

The recurring operating margin for the year was 12.6%, up 40 basis points compared with the previous year, with gains in volume, mix and price partially offset by input-cost inflation net of productivity, the company said.

Full-year sales was EUR27.62 billion, down from EUR27.66 billion in 2022. On a like-for-like basis, sales rose 7.0%, with price up 7.4% and volume/mix down 0.4%.

In the fourth quarter, consolidated sales were EUR6.66 billion, down from EUR7.01 billion a year ago.

Danone said its 2024 guidance was in line with its mid-term ambitions, with like-for-like sales growth expected between 3% and 5%, and recurring operating margin expected to post moderate improvement.

The board of directors will propose a dividend of EUR2.10 a share for 2023, up 5.0% from the previous year.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

February 22, 2024 01:42 ET (06:42 GMT)

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