(Bloomberg) -- Danone’s sales rose in line with expectations as the yogurt maker grew volumes.

Sales grew 5% in the final quarter of 2023, in line with analysts’ expectations and with positive volume and mix — a measure of consumers choosing more expensive formats. 

Its biggest unit — which makes dairy and plant-based substitutes - posted the slowest quarterly growth since 2022 amid lower inflation.

After a period of the highest inflation seen in decades, consumer goods producers are looking to grow volumes and claw back market share they lost to supermarket brands as shoppers traded down.

In his third year as chief executive officer, Antoine de Saint-Affrique is trying to show progress in his turnaround.

The company confirmed its mid-term guidance of growth between 3% and 5% for 2024, with a moderate improvement in profitability. 

Danone expanded its margin from operations — a measure of gross margin — by 140 basis points in 2023. Pricing and volume helped drive the increase and may open the dairy maker to accusations of increasing prices more than it needed to.

(Updates to add details throughout the story.)

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