Danone’s profits fell by half due to rising costs

French food group danone announced on wednesday that sYour profits in 2022 amounted to 959 million euros, 50.2% less than those recorded in 2021, The decline is explained by the high cost of raw materials and their partial withdrawal from Russia.

The company said in a statement that its current net profit rose 1.9 percent to 2,205 million euros.

Danone increased its sales by 13.9% in 2022to 27,661 million euros, while the current operating margin grew by 12.2%, slightly lower than in 2021 (13.7%) due to the effects of inflation that were not offset by an improvement in profitability.

The brand’s CEO, Antoine de Saint-Afrique, highlighted the “extremely difficult context” and “unprecedented volatility” of this year, noting that Danone is immersed in a profound transformation plan.

He added that billings had increased in all geographic regions and that Danone was continuing its strategy of focusing on the most profitable segments.

The exit from Russia, where the dairy and plant-based business was abandoned, affected their accounts by €500m and will have a similar impact in 2023.

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