USA – Danone a global leader in the dairy industry has indicated that it will continue to implement pricing measures in 2024 as it grapples with ongoing inflationary pressures.

The company’s CFO, Juergen Esser, noted that inflation is expected to further normalize in 2024, but certain factors like transportation costs, labor expenses, high raw material prices, and forex fluctuations, particularly in emerging markets, will continue to drive inflation.

In response, Danone plans to implement more selective pricing measures based on the category and region. Esser emphasized that pricing is expected to have an overall positive impact in 2024.

The company reported net sales of €27.6 billion (US$29.9 billion) for 2023, a 7% increase on a like-for-like basis.

However, operating income dropped by 4.7% to €2 billion, and recurring operating income increased by 3.1% to €3.5 billion. In addition, net income for the group declined by 8.1% to €881 million.

Danone’s dairy and plant-based products category witnessed a 4.5% increase in like-for-like sales and volume/mix growth of 2% in the fourth quarter. For the full year, this division achieved sales growth of 6.6% to reach €14.3 billion.

While the company acknowledged challenges, Esser expressed satisfaction with the last quarter’s performance, particularly in the dairy and plant-based products category.

He highlighted the growth being driven by Europe and North America, with a focus on the Greek platform and Oikos yogurts.

Danone is seeing positive contributions to volume mix across channels, with on-premise contributing significantly to double-digit growth globally.

Esser also discussed the stabilization of market shares for the US-based Silk plant-based milks and yogurts brand, emphasizing the ongoing need to pivot advertising toward occasion-based and benefits-based messaging.

Danone’s strategic focus includes addressing challenges and maintaining its market position while navigating changing consumer preferences.”

He also added that the company is closely monitoring inflationary factors, including raw material prices, labor costs, transportation expenses, and forex fluctuations.


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