Danone sees further growth in 2026, little impact from baby formula recall

(Sharecast News) - Danone has guided to steady underlying revenue growth over the coming year after an improvement in like-for-like sales in 2025, and said that recalls of infant formula products would not have a material impact on results. The French food giant reported on Friday that full-year sales totalled €27.28bn in 2025, representing a 0.3% decline on a reported basis but 4.5% higher in LFL terms, with volume/mix contributing 2.7 percentage points and price contributing 1.8pp.

In the fourth quarter alone, LFL sales were 4.7% higher than the previous year, with sustained momentum in Europe, and "exceptional performance[s]" in China, North Asia and Oceania, offsetting softer trading in North America. This was ahead of the 4.4% growth expected by company-compiled consensus.

Recurring net income for 2025 improved 5.0% to €2.35bn, with the recurring operating margin improving 44 basis points to 13.4%.

Like other companies, Danone has been recalling batches of infant formula products - such as those under the Aptamil and Cow & Gate brands - in response to concerns about the potential presence of cereulide bacteria, and said it is continuing to take action to comply with new requirements.

"Whilst recall processes are underway in coordination with authorities, the current financial impacts identified are not material. Impact assessment will be finalised once the recalls have been completed," the company said alongside its full-year results.

Looking ahead to 2026, LFL sales are expected to grow between 3% and 5%, in line with the company's medium-term targets, with recurring operating income growing faster than sales.

In his outlook statement, chief executive Antoine de Saint-Affrique said: "In a world that remains volatile, we remain disciplined and fully committed to our sciencebased and consumer and patient centric approach. We enter the year with confidence, aligned with the midterm ambition we have set out."

The stock was down 0.6% at €73.66 by 1026 GMT.