Danone sales rise 4.4% after baby formula recall

Danone said Wednesday its second-quarter sales rose 4.4% to 7.21 billion euros ($8.2 billion), helped by a rebound in its nutrition business after an international baby milk recall earlier in the year.

The French consumer goods group, which owns Evian and Badoit water, said the increase helped compensate for a 2% fall in first-quarter sales after the recall. Danone and several other manufacturers recalled batches of infant formula over the possible presence of a toxin that can cause nausea, vomiting and diarrhea.

First-half profit rose 13% to 1.18 billion euros. Danone said first-half operating profit increased 2.3% to 1.85 billion euros, with sales growth across all product categories.

Chief financial officer Juergen Esser told AFP the company faced a challenging environment with strong inflationary pressure. He said oil prices increased transport and packaging costs, but productivity gains helped Danone maintain margins.

Esser said high-protein yoghurts, medical nutrition and Evian and Volvic waters led growth, and that Danone sought to keep price increases to a minimum.