Inflation bites into profits of Actimel owner Danone with sales up 13 per cent to £23.7bn
French food giant Danone, producer of Actimel, has reported a full year increase in sales but admitted that soaring inflation and a hike in costs had impacted its profit margin.
The food manufacturer said sales increased to €27.7bn (£23.7bn) in 2022, up 13.9 per cent on a reported basis and 7.8 per cent on a like-for-like basis.
Paris-headquartered Danone raised its prices to 8.7 per cent, fuelled by increases in North-America and Europe in the last quarter of 2022.
During the year, Danone’s operating profit also grew slightly to €3.4bn (£2.9bn) for the year. However the group, which has three production sites across the UK, said that its company margin fell by 15.4 per cent to 12.3 per cent due to a hike in costs and inflation.
Antoine de Saint-Affrique, chief executive of Danone, described the year as “unprecedented” revealing that the group faced “external challenges” and volatility, however said Danone was entering 2023 with “renewed ambition” and confidence in its strategy.
He said: “In 2023, we will pursue our transformation, and further invest in our brands, products and capabilities while delivering in line with the mid-term guidance defined last year.”
The group, which produces other popular products such as Cow & Gate baby formula, also said that at its annual shareholders’ meeting in April, its board of directors will propose a dividend of €2.00 per share in respect of the 2022 fiscal year, up 3.1 per cent compared to last year.