Nestlé Says Global Infant-Formula Recall Hit Sales Less in Second Quarter
Nestlé said on July 23 that the financial impact of its global precautionary infant-formula recall eased sharply in the second quarter, as affected brands began to recover and production resumed with alternative suppliers.
The company said the recall reduced group organic growth by approximately 90 basis points in the first quarter of 2026 and 30 basis points in the second quarter. Organic growth measures sales growth excluding factors such as currency movements and acquisitions.
Nestlé’s Nutrition business, which includes infant formula, recorded negative organic growth for the first half. But growth in the division recovered to 1.7% in the second quarter after declining in the first three months of the year.
What Nestlé reported
Nestlé reported first-half sales of CHF 43.1 billion and group organic growth of 3.6%. The company said the infant-formula brands affected by the recall showed “a good recovery” and that it expected to regain share by the end of 2026.
Nestlé said the recall had been completed. It also said production had resumed using alternative suppliers and that all products on the market were safe. Those statements describe the company’s position on the recall and current product availability; they do not establish that every historical batch was safe.
The recall involved some infant-formula batches after Nestlé detected cereulide linked to an ingredient supplied by a global industry supplier. Nestlé’s consumer guidance said the precautionary recall began in January 2026 and covered more than 50 countries and regions. Consumers were directed to country-level notices for batch information and refunds.
Why the recall reached beyond Nestlé’s results
The World Health Organization said on February 25 that batches subject to the recall had been distributed across 99 countries and territories. The international scope meant that families, retailers and health authorities in many markets had to check product information and availability while the recall was being carried out.
WHO assessed the overall public-health risk as moderate. It said infants are particularly vulnerable and that cereulide can cause acute vomiting and rapid dehydration, especially in young infants.
WHO also said information about the full extent of distribution, exposure and case detection remained incomplete. That assessment concerns the wider multi-country food-safety event. It does not by itself establish that a particular Nestlé product caused an illness.
What happens next
For consumers, the immediate practical step remains checking local recall notices and batch details rather than relying only on a product brand name. Nestlé’s guidance directs consumers to their country-specific information for instructions on affected products and refunds.
For Nestlé, the next stated target is a commercial recovery. The company expects the affected infant-formula brands to regain share by the end of 2026, while continuing production through alternative suppliers.
Nestlé’s half-year results show that the disruption had a smaller effect on group organic growth in the second quarter than in the first. But the reach of the recall and WHO’s warning about incomplete distribution and exposure information leave public-health authorities and families dependent on accurate local product notices as the recovery continues.
Sources
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