Nestlé reported a 3.5% organic growth during the 2025 fiscal year, despite being among several notable baby formulas recalled over the presence of a toxin.
Nestlé’s profits were driven by a strong second-half in real internal growth from 0.2% to 1.4%, though net profit decreased by 17% and the company’s outlook for 2026 is far less promising amid the global infant formula recall.
“I am encouraged by our performance during 2025, which reflects the targeted actions we have taken in a difficult external environment,” said Nestlé CEO Philipp Navratil via Food ingredients.
Nestlé initially recalled batches of infant nutrition products in dozens of countries, mostly in Europe, as well as Australia, Brazil, China, Mexico and South Africa, earlier this month, with the French companies Danone and Lactalis following suit on January 22. Nestlé said specific batches of its SMA infant formula and follow-on formula sold worldwide may contain cereulide, which can result in nausea and vomiting after consumption, and said the products weren’t safe to be fed to babies.
A judicial inquiry is investigating whether Nestlé milk was linked to the death of a baby in France, with the farm ministry claiming results were expected in about 10 days. The Singapore Food Agency ordered a precautionary recall of Danone’s Thai-origin Dumex Dulac 1 and Nestlé’s Swiss-origin NAN HA1 SupremePro after cereulide was detected, while Lactalis announced Wednesday that its nutrition unit had recalled batches of infant formula in 18 countries due to the presence of cereulide in an ingredient sourced from a supplier.
“All infant milk producers in France and internationally are likely to have been affected by deliveries of non-compliant raw materials from the same manufacturer, which led to recalls by Nestle and Lactalis,” a French farm ministry official told Reuters.
Nestle had previously said it hadn’t received any confirmed reports of illness caused by consumption of the products, but issued the recall “out of an abundance of caution.”
“Following the detection of a quality issue with an ingredient provided by a leading supplier, Nestlé has undertaken testing of all arachidonic acid (ARA) oil and corresponding oil mixes used in the production of its potentially affected infant nutrition products,” the company said. “No illnesses have been confirmed in connection with the products involved to date.
“We are in contact with authorities in the relevant countries to ensure the necessary steps are taken. Nestlé assures parents and caregivers that it is implementing appropriate actions to help ensure the health and wellbeing of families and their babies.
“At the same time, we are working to minimize any potential supply disruption.
“Nestlé remains committed to keeping parents, caregivers and the public informed, and to providing clear, transparent information and support throughout this process.”
Nestlé confirmed that ARA oil is used in various infant nutrition products worldwide “so this issue impacts multiple countries, brands and products,” but noted that “specific brands and products impacted differ on a country-by-country basis.”
“Our local teams are in the process of publishing the necessary information on their local Nestlé / product brand websites,” the company added. “Nestlé remains committed to keeping parents, caregivers and the public informed and to providing clear, transparent information and support throughout this process.”
Nestlé said any parents with concerns over their child’s health or nutrition are advised to contact their pediatrician or healthcare provider and will be subject to a full refund on the recalled product.
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