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    Danone beats Q1 expectations despite formula recall, Iran war

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    <span>STORY: Danone on Wednesday said it beat first-quarter sales growth expectations.</span><span>Though a European baby formula recall and supply disruptions related to the Iran war weighed on its specialized nutrition business.</span><span>Shares rose nearly 3% in the wake of the French food group's report.</span><span>The company, whose brands include Activia yogurt and Evian water, also kept its full-year guidance intact.</span><span>Though it did not quantify how things might improve in the second quarter.</span><span>Analysts said the company's underperforming U.S. coffee creamer business improved in the first quarter.</span><span>The U.S.-Israeli war on Iran has disrupted supply chains.</span><span>Including shipments of baby formula imported from Europe that move through the Middle East.</span><span>Danone's overall business in the region accounts for around 2% to 3% of net sales.</span><span>The baby formula recall hit companies including Danone in the first quarter.</span><span>Investors are eager to understand the extent of the financial and reputational impact.</span><span>Danone, which recalled infant formula products across Europe and the Middle East, said its focus was to restore trust in the infant formula business as the recall situation was "going back to normal."</span>

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