Baby formula crisis and Iran conflict weigh on Danone’s figures

Growth is slowing somewhat at Danone, which is feeling the impact in Europe of the infant formula recall and the conflict in the Middle East. Sales of healthy dairy products such as skyr and kefir are on the rise.

Decline in baby food

Danone’s revenue grew by 2.7% to nearly 6.71 billion euros in the first quarter of fiscal year 2026. 1.5% of that revenue increase was attributable to growth in the volume mix, with the remaining 1.2% coming from price increases. Danone achieved its strongest revenue growth in the Asia-Pacific region (+6%) and in the Americas (+3.4%). In Europe, the Middle East, and Africa (EMEA), however, the group grew by only 0.6%.