Danone recently announced a decrease in full-year profit and sales for the year 2023 but remains confident that its 2024 guidance aligns with its mid-term targets.
Financial Highlights
- Net Profit: 2023 net profit totaled 881 million euros, down from EUR959 million in the previous year.
- Recurring Net Income: Excluding exceptional items, recurring net income reached EUR2.28 billion, reflecting a 3.5% increase compared to the previous year.
- Recurring Operating Margin: The recurring operating margin for the year improved to 12.6%, a 40 basis points increase from the previous year.
- Sales Performance: Full-year sales amounted to EUR27.62 billion, slightly lower than the previous year. However, on a like-for-like basis, sales saw a 7.0% increase, with price up by 7.4% and volume/mix down by 0.4%.
- Fourth Quarter Sales: In the fourth quarter, consolidated sales decreased to EUR6.66 billion from EUR7.01 billion in the prior year.
2024 Guidance
Danone’s 2024 guidance remains aligned with its mid-term ambitions, with an expected like-for-like sales growth between 3% and 5% and a projected improvement in recurring operating margin.
Dividend Proposal
The board of directors will suggest a dividend of EUR2.10 per share for the year 2023, marking a 5.0% increase from the previous year’s dividend payout.