Danone predicts sales growth will accelerate amid European recovery

French food group Danone said group sales growth would accelerate in 2014 as a recovery in European dairy gathers momentum and that it aimed to return to strong profitable growth from the second half of the year.

The world’s largest yoghurt maker also said it was confident about prospects in China despite accusations there of bribery and overpricing, and it hopes to rebuild its baby food business in Asia after an infant formula recall dented profits.

To reduce its dependence on lower-growth Europe, Danone has been expanding in emerging markets, notably in China, where previous food safety scares have boosted demand for foreign baby milk formula. China now accounts for 20% of its baby food sales, making it the No 2 contributor after dairy.