Nestlé says global infant-formula recall continued to weigh on demand in July 23 results
Nestlé said on July 23 that a global infant-formula recall was still affecting consumer demand, even as the Switzerland-based food company reported continued growth in its first-half 2026 results.
The company reported net profit of CHF 3.5 billion and basic earnings per share of CHF 1.35. Organic growth in its Food and Snacks business was 3.7%, while retail sales grew organically by 3.6% and out-of-home sales grew by 4.1%.
The results show the continuing consumer and business consequences of a product-safety event for a multinational company whose brands are sold through global retail and out-of-home channels. Nestlé said the recall’s effect on demand persisted into the first half of the year, but it did not disclose a separate figure for how much revenue or profit the recall reduced.
Growth continued across major businesses
Nestlé said organic growth was supported by brands including Maggi, KitKat and Milo. “Organic growth” measures sales performance after excluding the effects of currency movements, acquisitions and disposals, according to the company’s reporting language in the results release.
The company’s reported figures also distinguish between where products are sold. Retail organic growth was 3.6%, while out-of-home organic growth was 4.1%. The out-of-home channel includes sales connected to consumption outside the home, while retail covers consumer purchases through stores and other retail channels.
Nestlé said structural cost savings were offset by increased investment and commercial spending. That means the savings did not translate directly into a stronger bottom line during the period because the company also spent more on commercial activity and brand-building.
The results therefore present a mixed picture: Nestlé reported positive growth and substantial profit, while also acknowledging that demand remained affected by the recall and that additional investment absorbed some of the benefit from cost savings.
Recall began in January
The infant-formula recall was not newly announced with the July results. In an April 23 sales update, Nestlé said it had launched a global precautionary recall of infant-formula batches in January 2026 after detecting cereulide.
Nestlé linked the contamination to an ingredient sourced from a global industry supplier. The company described the ingredient chain as international, and the recall as global. The available source material does not establish whether every affected product or market had fully returned to normal by July.
Cereulide is identified in the approved company material as the substance detected in connection with the recall. The packet does not provide additional findings about health outcomes, the number of recalled batches, the countries involved, or the volume of products removed. Those details are not included here because Nestlé’s results materials, as supplied, do not support them.
What the results do—and do not—show
Nestlé’s figures establish that the company continued to grow across the reported Food and Snacks, retail and out-of-home measures during the first half of 2026. They also establish that the company said the infant-formula recall continued to affect consumer demand.
They do not establish that the recall caused a particular percentage of the company’s revenue or profit result. Nestlé did not quantify the recall’s separate financial effect in the supplied materials, so its contribution cannot be calculated from the reported growth rates or net profit.
The next known development in the packet is the July 23 half-year results release itself. No further deadline, product-clearance date or timetable for the recall’s resolution is provided. The continuing question for consumers and investors is whether demand in affected infant-formula markets returns to normal and how the recall-related effects appear in later company reporting.
Sources
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