Economic experts are offering mixed forecasts regarding Nestlé’s potential losses following its global baby formula recall. According to analyses from financial institutions such as Jefferies and Barclays, the recall could result in a loss of approximately $1.5 billion (1.2 billion CHF), representing 0.8% to 1.5% of the group’s total revenue. Stock market reactions have already driven the company’s share price down by 4.6% since the beginning of 2026. However, Nestlé has disputed these figures, asserting that the actual impact is less than 0.5% of annual turnover.
This incident places significant pressure on the new CEO, Philipp Navratil, as the group undergoes a roadmap to cut 16,000 jobs and restructure its debt. Beyond the financial toll, observers are concerned about long-term reputational damage, particularly in the Chinese market, where consumers are highly sensitive to infant nutrition safety. The root cause was identified as raw material (ARA oil) from a supplier potentially contaminated with cereulide toxin.
In the Vietnamese market, following a mandate from the Ministry of Health, Nestlé Vietnam has initiated a recall of 17 batches of imported NAN formula. Despite confirming that the BEBA and Alfamino brands are not officially distributed in Vietnam, the company decided to withdraw potentially affected batches as a precautionary measure. To date, the group confirms that no official cases of poisoning have been reported worldwide.
Source: https://vnexpress.net/nestle-nguy-co-mat-1-5-ty-usd-vi-thu-hoi-sua-bot-toan-cau-5003578.html