PARIS, April 26 Reuters Danone, the world39;s largest yoghurtmaker, raised its 2023 outlook on Wednesday after it managed to pass on increased costs through price rises and firstquarter sales growth was the fastest in a decade.

Danone, which expects prices to peak this year and also anticipates productivity gains, kept its forecast for a moderate improvement in recurring operating margin for the year.

The maker of Activia yoghurt, Evian water and Aptamil infant milk said it expected likeforlike 2023 sales growth of between 4 and 6, having previously forecast 35 growth.

Sales rose 10.5 likeforlike to 6.96 billion euros 7.68 billion in the first quarter, beating expectations for 7.3 growth in a companycompiled consensus of 18 analysts. This was its fastest quarterly growth rate in a decade.

By 0811 GMT, Danone shares were up 1 at 61.08 euros, outperforming the wider market.

All three of Danone39;s businesses contributed to growth and Specialised Nutrition and Waters were particularly strong, it said.

Danone increased its prices by 10.3 during the quarter while sales volume remained positive, up 0.2.

Danone, like its rivals Nestle and Unilever, has increased prices to cope with higher commodities and supply chain costs, but faces the challenge of judging how much prices can rise before even affluent shoppers decide to stop buying.

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