(Reuters) – The agrifood group Danone said on Wednesday targeting growth in turnover between 3% and 5% in comparable data in 2025 after having increased sales higher than expectations last year.
The manufacturer of Activia yogurts also improved its profit margin in 2024 thanks to the increase in volumes while the price increase slows down.
Consumer goods groups have slowed down their price increase after three years of high inflation in order to reconquer consumers who had turned to cheaper products in the context of the cost of living crisis.
Danone noted its prices of 1.3% in 2024, against a consensus which tapped on an increase of 1.4% during the period. Price increases slowed 0.6% in the last quarter of the year, more than expected, consensus anticipating an increase of 0.8% after 0.7% in the previous quarter.
The group registered a turnover of 27.38 billion euros in 2024, up 4.3% in comparable data, which is slightly higher than the consensus of 4.2% provided by the company.
For the fourth quarter alone, turnover increased by 4.7% in comparable data, exceeding a consensus of 4.2%, thanks to the contributions of its three activities – dairy and plant products (EDP), specialized nutrition and waters.
This performance reflects the sustained demand for medical nutrition and baby food in China, as well as those of hyper protein ranges, coffee and waters in North America.
“We are thus starting the next chapter of our stronger and determined strategy to go even further,” said Director General Antoine de Saint-Affrique in a statement.
The current operating margin appears at 13% of turnover in 2024, against 12.6% in 2023, in accordance with consensus.
The French group also anticipates growth in the operating profit common faster than that of turnover for the current tax year.
With a cash flow of 3 billion euros in 2024, at a record level higher than analysts’ expectations (2.45 billion euros), the board of directors will offer a dividend of 2.15 euros per share for the last financial year, up 2.4% compared to the previous year.
The group’s prospects for 2025 comply with those announced in June for the period 2025-2028, Danone focusing more on health and medical nutrition to increase sales.
(Written by Diana Mandiá, with Dominique Vidalon, edited by Kate Entringer)
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