Nestlé Reports 31.4% Drop in First-Half 2026 Net Profit

The Swiss food and beverage company Nestlé SA reported a 31.4% decline in net profit for the first half of 2026, falling to 3.472 billion Swiss francs from 5.065 billion francs in the prior year. This decrease resulted from increased restructuring costs and asset write-downs associated with the sale of its mainstream vitamins, minerals, and supplements business and its ice cream division.

Despite the profit decline, organic growth rose to 3.6% and real internal growth increased to 1.5% as demand recovered. Performance was strongest in emerging markets and within the Coffee and Food & Snacks categories. China showed signs of stabilization following inventory reductions, though the Nutrition category declined because of an ongoing infant formula recall.

CEO Philipp Navratil stated that the company is prioritizing investment in leading brands and growth platforms to drive efficiencies. Nestlé maintained its full-year 2026 outlook, projecting organic growth between 3% and 4% and expecting an improved underlying trading operating profit margin.