Gross sales at Danone, the French maker of yoghurts and different meals merchandise, rose final yr as the corporate elevated costs within the closing 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 forex 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 closing 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 on account of 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 strong supply,” stated chief govt Antoine de Saint-Affrique.

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

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

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