Danone reports “strong” end to 2021 despite inflationary challenges

Danone has reported an increase in net sales of 3.4% on a like-for-like (LFL) basis in its full-year results, despite inflationary challenges.

The owner of Evian and Volvic posted 2021 net sales of €24.28 billion, compared to the €23.62 billion figure for 2020. Operating income stood at €2.26 billion last year, representing a 19.3% decline from 2020.

Danone’s Essential Dairy and Plant-based unit posted LFL sales growth of 3.7% to €13.09 billion. Meanwhile, the company’s Specialized Nutrition business saw a 1% increase in sales in 2021 on an LFL basis.

The Waters business recorded LFL sales growth of 7.2% to €3.96 billion, “despite the strong inflationary environment, notably driven by volume recovery, improved product mix and record-high productivity”.

Danone’s CEO, Antoine de Saint-Affrique, said: “With Q4 sales up 6.7% on an LFL basis and volumes at 4%, we ended the year on a strong note. This led to full-year growth of 3.4% on an LFL basis, underpinned by a sound mix component. All categories contributed to this solid performance.”

He continued: “We delivered on our commitment to return to profitable growth in H2, with recurring operating margin at 13.7% in 2021. This was enabled by a strong focus on execution and a step up in productivity, a proactive approach to pricing and the disciplined implementation of ‘Local First’.”