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.

Danone is spending €486m to lift its stake in China’s top dairy firm, aiming to tap into booming local demand and secure greater control over supply quality in a region often hit by food safety scares.

Danone said yesterday an Asian recall of infant formula had a worse-than-expected impact on its high-margin baby sales division in the third quarter and that sales in affected markets would not recover before next year.