Danone Shares Fall on Baby-Formula Recall
By Billy Gray
Danone shares fell after the company said it would recall batches of infant formula in some markets.
Shares in Danone were down 5% at 64.14 euros in early European trading after the French food company said late Friday that it would recall batches of baby formula manufactured in Ireland and exported to several European Union countries, as well as the U.K. It followed a move by Singapore authorities last week to halt sales of a formula brand Danone manufactures in the city-state.
"We believe the central issue is becoming one of manufacturing protocols more than supplier issues and it is likely we will soon get some differentiation in share-price outcome between those that can demonstrate compliant manufacturing protocols and other providers," Deutsche Bank analyst Tom Sykes said.
Bernstein analysts said there could be a direct recall impact of less than 50 million euros ($59.4 million) of revenue in the targeted markets.
Write to Billy Gray at william.gray@wsj.com
(END) Dow Jones Newswires
January 26, 2026 04:36 ET (09:36 GMT)
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