French food and drink company Danone said its revenues grew by 5.4% in 2012.
But it said revenues are coming under increasing pressure in economically-struggling Europe, where the company said it will cut 900 jobs.
The company said it had expanded in Latin America and especially Asia during the year, where baby food sales buoyed 2012 margins.
The Paris-based maker of Activia yogurt and Evian bottled water said ramping up production in North America for Greek-style yogurt was a big push as were higher sales of baby food in China.
But European sales were down 3% in 2012 and operating income declined 10%. The company also noted sharply higher tax bills, especially in France.