LONDON (ShareCast) - (Sharecast News) - Danone reported full-year sales narrowly ahead of forecasts on Wednesday, sending shares in the French food group higher.
Fourth-quarter sales rose 6.4% on a like-for-like basis, which helped full-year underlying sales rise 3.4%. Analysts had been expecting a 3% improvement for the full year.

Net sales rose 2.8% on a reported basis, to €24.28bn, while operating income nudged ahead 0.6% to €3.34bn after the owner of Evian and Activia returned to profitable growth in the second half.

Globally, sales rose by 2.9% in Europe and North America, to €13.76bn, and by 3.0% to €10.52bn. Group earnings per share were down 1.7%, at €2.94.

Antoine de Saint-Affrique, who was appointed chief executive last September, said: "We ended the year on a strong note.

"We delivered on our commitment to return to profitable growth in the second half, with recurring operating margin at 13.7% in 12021. This was enabled by a strong focus on execution and a step-up in productivity [and] a pro-active approach to pricing."

As at 1330 GMT, shares in the Danone were trading 5% higher.

Consumer goods companies are facing near unprecedented levels of cost inflation, affecting raw materials, energy, wages and transport. Rival Unilever warned earlier this month that soaring cost inflation was likely to hit profitability despite price rises.

Danone finance director Juergen Esser told analysts that cost inflation, which was 8% in 2021, was likely to be in the low to mid-teens range in 2022, Reuters reported.

However, Danone did not provide an update on current trading, instead noting that it would share its "vision, strategy and priorities" at the company's capital markets day on 8 March, along with guidance for the current year and mid-term.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE