Gross sales at Danone, the French maker of yoghurts and different meals merchandise, rose final yr as the corporate elevated costs within the ultimate quarter of 2022, however inflation and excessive prices weighed on its revenue margin.

Gross sales rose 7.8 per cent final yr on a like for like foundation, which strips out foreign money impacts, to €27.7bn, beating expectations. The corporate raised costs 8.7 per cent yr on yr, led by sharp will increase in North America and Europe within the ultimate months of 2022.

Recurring working revenue grew barely to €3.4bn for the yr, however the firm’s margin fell by 1.54 share factors to 12.2 per cent attributable to larger prices and inflation, which had been solely partially offset by the worth will increase.

“Whereas 2022 was a yr of unprecedented exterior challenges and volatility, for Danone it has additionally been a yr of deep transformation and stable supply,” stated chief government Antoine de Saint-Affrique.

“Constructing on 2022 momentum, we’re getting into 2023 with renewed ambition and confidence in our technique. In 2023, we are going to pursue our transformation, and additional spend money on our manufacturers, merchandise and capabilities whereas delivering in keeping with the midterm steerage outlined final yr,” he added.

The corporate has laid out a 2023 goal of like-for-like gross sales development of between 3 and 5 per cent with “reasonable enchancment” in recurring working margin.

It additionally proposed a dividend of €2 per share for 2022, up 3 per cent on final yr.