Danone Sees Up to €70 Million Hit From Baby Formula Recalls
Infant formula for sale in a supermarket in Paris.
Photographer: Riccardo Milani/AFP/Getty Images
Danone SA gave its first estimate of the potential cost of the recent recalls of infant formula over a contamination scare, saying it expects a €35 million to €70 million ($82.4 million) financial hit in the first quarter of the year.
“After that one-off impact, we should progressively go back to a normal situation,” Deputy Chief Executive Officer Juergen Esser said in an interview. “Therefore, we also confirmed this morning with lots of confidence our guidance for the full year.”