By Nick Kostov

PARIS--Danone SA (BN.FR) unveiled a 1 billion euro efficiency program over the next four years as the world's biggest yogurt maker reported a 34% rise in net profit for the full year.

The company said that in a "volatile and complex environment" it had decided to launch a review of its costs, saying it would consider reinvesting a part of the savings to fuel growth.

"In a world that continues to be difficult with several markets in transition we have decided to simplify our organization to be more agile and closer to our local markets," Chief Financial Officer Cecile Cabanis said.

On Wednesday, Danone announced a 34% rise in net profit to EUR1.72 billion. The company boosted its dividend to EUR1.70, giving investors a yield of 6.3%.

Sales for the three months to Dec. 31 fell to EUR5.36 billion from EUR5.38 billion, pressured by an unfavorable exchange rate. On a like-for-like basis, sales rose 2.1% in the period.

Emmanuel Faber, Danone's chief executive, has vowed to return the company to "strong, profitable and sustainable growth" by 2020, reviewing its business in China and overhauling its fresh dairy unit.

The Paris-based company is in the process of completing a $10.4 billion deal to buy U.S. organic-foods producer WhiteWave Foods Co. (WWAV).

Write to Nick Kostov at nick.kostov@wsj.com

(END) Dow Jones Newswires

February 15, 2017 01:54 ET (06:54 GMT)

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