PARIS (Reuters) – Danone said on Thursday that it expects like-for-like sales growth of between 3% and 5% for 2024, after +7% achieved last year thanks to the increase in prices which had only a slight impact on volumes.
The agri-food group raised its turnover forecast in October and expected an increase in sales of between 6% and 7% for the whole year.
In the fourth quarter alone, turnover increased by 5.1%, with the volume/mix effect becoming positive again at +0.8%.
“In a context that remains difficult, the gradual improvement in our volume/mix, which became positive in the fourth quarter, the progress made by our EDP activities in Europe, as well as the strong and continuous growth dynamic of our Medical Nutrition activity are so many resolutely encouraging signals, even if there is still a way to go,” commented the general director, Antoine de Saint-Affrique, quoted in a press release.
The group, which is carrying out its Renew strategic plan, announced Thursday an investor day for the month of June.
In 2023, the current operating margin reached 12.6%, up 40 basis points, in line with Danone’s stated objective of “moderate improvement”.
This increase is mainly explained by the improvement in the operating margin, with volume, mix and price effects, which offset the increase in input costs and investments in brands.
For 2024, Danone expects a further “moderate improvement” in the margin.
Competitor Nestlé is also due to publish its quarterly results this Thursday.
(Written by Blandine Hénault, edited by Camille Raynaud)
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