Danone report a 2% decline in sales to €6.7bn for the first quarter of 2026. Revenue was  affected mainly by the rise in the value of the euro, but also by infant formula recalls and the war in the Middle East. On a like-for-like basis and at constant exchange rates, sales rose by 2.7, that’s why Danone emphases “quality growth” across its three sectors (dairy products, specialised nutrition and water), confirming its annual targets.

Recalls of infant formula cost it between 0.5% and 1% of turnover. Financial consequences of the war in the Middle East cannot be quantified at this stage. But Danone makes 2–3% of its turnover in the Near and Middle East.

Danone confirmed its annual targets for 2026, namely organic sales growth (excluding currency and scope effects) of 3 to 5 per cent.

“Our first-quarter performance once again confirms the resilience, strength and relevance of our health-focused portfolio: in a challenging environment, we have recorded solid growth” on a like-for-like basis, said Chief Executive Antoine de Saint-Affrique, quoted in a press release. The 2% decline in sales “is almost entirely due to currency effects” linked to the strength of the euro against many currencies, which weighed on turnover by 5%, Danone’s Chief Financial Officer, Juergen Esser said. Overall, “these are fairly satisfactory results, given that they were achieved in a somewhat challenging environment,” he emphasised.