French food group Danone logo is seen at the company headquarters in Paris, France, February 5, 2024. REUTERS
PARIS, April 22 (Reuters) – French food group Danone delivered first-quarter sales growth of 2.7%, which was slightly above expectations but marked a sharp slowdown from the previous quarter, as a recall of baby formula across Europe and the conflict in the Middle East hit specialised nutrition sales.
The group, whose brands include Activia yoghurt, Aptamil formula and Evian water, said that in an environment that remained “volatile and uncertain”, its health focused and science-based portfolio provided elements of resilience.
Danone also kept its full year guidance intact.
First quarter sales reached 6.708 billion euros ($7.88 billion), a like-for-like growth of 2.7% against analysts’ expectations of a 2.6% rise. This marked a slowdown from 4.7% growth in the fourth quarter 2025.
Danone reiterated 2026 guidance in line with its mid-term aims of like-for-like sales growth of 3-5%, with recurring operating income growing faster than sales.
The baby formula recall has hit companies including Danone and Nestle due to possible contamination with the toxin cereulide, with investors keen to understand the extent of the financial and reputational impact.
($1 = 0.8517 euros)
Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta
