Nestlé reported a 17% decline in annual net profit to CHF 9.03 billion in FY25, driven by a infant formula recall, restructuring costs, and asset writedowns. Trading operating profit fell to CHF 12.68 billion from CHF 14.63 billion, with margins contracting to 14.2% from 16%. The infant formula recall in December 2025 and January 2026 triggered inventory write-offs, adding to financial pressures.

Goodwill and intangible assets dropped CHF 5.55 billion to CHF 44.32 billion, reflecting significant impairments. The Nutrition and Health Science segment, which holds CHF 21.73 billion in goodwill, saw operating profit fall to CHF 709 million with a 10.8% margin. Zone Americas revenue fell to CHF 34.48 billion, while Europe was the only region to see growth.

Operating cash flow dipped to CHF 15.90 billion, and net debt remained CHF 46.25 billion. Despite challenges, Nestlé maintained dividend payouts of CHF 7.85 billion, signaling commitment to shareholder returns.