French food company Danone reported first-quarter revenue growth that exceeded analyst predictions but showed a significant deceleration from the prior quarter, as the company faced challenges from a European baby formula recall and Middle Eastern conflicts affecting its nutrition business.
The multinational corporation, known for producing Activia yogurt, Aptamil baby formula, and Evian bottled water, achieved 2.7% sales growth during the quarter. Company executives described the current business climate as “volatile and uncertain” but emphasized that their health-oriented and scientifically-backed product lineup offered some stability.
The company maintained its annual financial projections despite the quarterly challenges.
Revenue for the three-month period totaled 6.708 billion euros (equivalent to $7.88 billion), representing like-for-like growth of 2.7% compared to analyst forecasts of 2.6%. However, this represented a notable decline from the 4.7% expansion recorded in the fourth quarter of 2025.
Company leadership confirmed their 2026 financial outlook remains aligned with medium-term objectives, targeting like-for-like sales increases of 3-5% while expecting recurring operating income to outpace sales growth.
The infant formula recall has impacted multiple major food manufacturers, including Danone and Nestle, due to potential contamination involving the cereulide toxin. Market analysts are closely monitoring the financial and brand reputation consequences for affected companies.
