# Food group Danone raises 2022 outlook as third-quarter sales beat expectations Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-28 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Danone Raises 2022 Revenue Forecast on Strong Q3 Sales Meta Description: French food group Danone raises its 2022 revenue growth forecast to 7-8% after beating Q3 sales estimates. CEO Antoine de Saint-Affrique leads revival amidst URL: https://financedigest.com/food-group-danone-raises-2022-outlook-as-third-quarter-sales-beat-expectationshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-27t155244z1lynxmpei9q0pwrtroptp4danone-results-1736814957572-compressed.jpg) By Dominique Vidalon PARIS (Reuters) – French food group Danone on Thursday raised its 2022 revenue growth forecast after its third-quarter sales beat analysts’ estimates as the firm was able to raise prices to counter soaring costs. The consumer goods giant and owner of Evian and Badoit water and Activia yoghurt said it now expected like-for-like sales growth to reach 7-8% this year compared with the already raised forecast of 5-6% it gave in July. It said it expects a recurring [operating margin](https://www.financedigest.com/ubisoft-vows-to-get-back-to-operating-margin-above-20-in-medium-term.html "Ubisoft vows to get back to operating margin above 20% in medium term") above 12%, down from 13.7% last year. Danone [posted a 9.5% rise in third-quarter like-for-like sales](https://www.financedigest.com/mercedes-posts-rise-in-q1-sales-boosted-by-evs-premium-cars.html "Mercedes posts rise in Q1 sales boosted by EVs, premium cars") to 7.334 billion euros ($7.35 billion), beating analysts’ expectations for a 6.9% rise in a poll compiled by the company. This also marked a sequential acceleration from 7.7% [sales growth achieved in the second quarter and reflected strength in all the group’s](https://www.financedigest.com/crown-agents-bank-owner-explores-sale-of-british-payments-group-sources.html "Crown Agents Bank owner explores sale of British payments group –sources") businesses, notably in baby food in China and in bottled waters. CEO Antoine de Saint-Affrique, who took over in September 2021, must conduct a revival [plan amid mounting input costs](https://www.financedigest.com/australias-nuclear-submarine-plan-to-cost-up-to-245-billion-by-2055-defence-official.html "Australia’s nuclear submarine plan to cost up to 5 billion by 2055 -defence official"), coupled with further uncertainties caused by Russia’s invasion of Ukraine, which led the group to unveil plans to shed control of its dairy food business in Russia. [Price increases](https://www.financedigest.com/coca-cola-hbcs-annual-profit-beats-warns-of-price-increases.html "Coca-Cola HBC’s annual profit beats, warns of price increases") contributed 10.9% to third-quarter revenue growth. [Finance chief](https://www.financedigest.com/bootmaker-dr-martens-warns-on-profit-as-finance-chief-walks.html "Bootmaker Dr Martens warns on profit as finance chief walks") Juergen Esser reiterated that cost inflation was expected to be in the “mid-teens” this year but said it was hard to make predictions for 2023. While Danone was conscious that consumer wallets are tightening, Esser said: “If we [need to do more on prices](https://www.financedigest.com/swedish-energy-minister-need-to-decouple-gas-from-electricity-price.html "Swedish energy minister: need to decouple gas from electricity price"), we will do it in a responsible manner even if it costs us a little bit of volume. In the third quarter, the closely-watched Essential Dairy and Plant-based (EDP) business in Europe registered [2.2% sales](https://www.financedigest.com/logitech-quarterly-sales-fall-22-as-slowdown-fears-bite.html "Logitech quarterly sales fall 22% as slowdown fears bite") growth with a contrasted performance by geography. Sales and volumes were impacted by portfolio choices, namely the pruning of underperforming brands, and temporary delivery suspensions in some countries such as Germany and Belgium due to lengthy [price negotiations](https://www.financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiation.html "Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation") with retailers, Esser said. Other countries like France, benefited from the good momentum of key brands like Actimel, Danone, Yopro and Danette. One positive was the Mizone water [business in China which returned to growth in the quarter despite challenging](https://www.financedigest.com/the-maserati-100-one-hundred-business-disruptors-challenging-the-establishment.html " ‘The Maserati 100’ One Hundred Business Disruptors Challenging The Establishment") operating conditions. Rival Unilever Plc also on Thursday [raised its full-year sales forecast as it lifted](https://www.financedigest.com/cisco-forecast-raise-allays-tech-spending-fears-lifts-shares.html "Cisco forecast raise allays tech spending fears, lifts shares") prices to counter costs. ($1 = 0.9974 euros) (Reporting by Dominique Vidalon; Editing by Mark Porter, Kirsten Donovan) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---