Danone Reports Higher Sales, Will Sell Formula Line

Danone last week announced strong numbers for the second quarter of 2015, along with its decision to cut ties with its embattled Chinese infant formula line.

The French food company said that quarterly sales increased 4.5 percent, which narrowly exceeded market projections despite a sluggish global economy.

Danone's baby food and water divisions particularly helped its performance, while lower milk prices aided the dairy segment for the world's largest yogurt maker. 

Company executives maintained their revenue growth forecast of 4 to 5 percent for the entirety of 2015.

Danone officials also said the company would sell its Dumex formula brand to partner Yashili International Holdings Ltd.

Danone would, in exchange, acquire a larger stake in Yashili parent company China Mengniu Dairy Co.

Dumex was affected by a 2013 safety scare from one of its suppliers, and Danone officials evidently abandoned efforts to broaden its product offerings in order to grow the brand.

Danone CEO Emmanuel Faber said that although the company remained confident in China's baby food market, officials believe it needed a "two-tier strategy."