Frankfurt, Aug 30 — Danone said baby-nutrition sales in Asia will fall in the third quarter because the company had to recall infant-formula products after a warning of tainted ingredients in some products supplied by Fonterra Cooperative Group Ltd.

“We are deploying action plans to restore sales in affected markets,” Paris-based Danone said in a statement today. “Their success will enable Danone to meet its growth and margin targets for 2013.”

Danone, which gets 20 per cent of revenue from baby nutrition, recalled the products in eight markets, including New Zealand, China and Hong Kong, as a precautionary measure.

The company said it still expects to post organic revenue growth of about 5 per cent in the third quarter, even though the recalls had a “significant” impact on sales in the region.

The findings of the New Zealand authorities’ investigation of Fonterra conclude that all ingredients used by Danone are in “full compliance with the highest standards of quality,” Danone said today. — Bloomberg