PARIS, Feb 22 Reuters French food group Danone said on Thursday it was starting this year with confidence after it delivered 2023 sales growth at the top end of its forecast, and improved its profit margin as higher prices offset lower volumes.

Building on the positive momentum of 2023, we are starting this financial year with confidence in our Renew strategy, CEO Antoine de SaintAffrique said in a statement.

Amid encouraging signs at the world39;s largest yoghurt maker, SaintAffrique cited the visible progress of the Essential Dairy and Plantbased EDP business in Europe and group sales volumes that turned positive in the fourth quarter as pricing eased.

For 2024, Danone said its forecast was in line with its midterm ambition of likeforlike sales growth of 35, with a moderate improvement in recurring operating margin.

The consumer goods giant, owning brands including Evian and Badoit water and Activia yoghurt, reported 2023 sales of 27.619 billion euros 29.84 billion, a likeforlike rise of 7, at the top end of its 67 sales growth guidance and in line with analysts expectations.

The operating margin for full year 2023 rose to 12.6 of sales from 12.2 in 2022, compared with average analysts39; estimates of 12.5.

For the fourth quarter ended Dec. 31, sales grew 5.1, slightly above market estimates of 5, with contribution from all its three businesses EDP, Specialised Nutrition and Waters.

Danone, like its rivals Nestle and Unilever, has increased prices to cope with…