Food giant Nestlé has reported “low single-digit growth” in its infant nutrition product sales in China in the first nine months of the year, a day after citing falling demand for imported infant formula in the world’s second-largest economy for the closure of its Wyeth Nutrition plant in Askeaton, Co Limerick.
The Swiss group said on Wednesday that it would cease operations at the plant in the first quarter of 2026 with the likely loss of some 542 jobs.
In third-quarter results published on Thursday, Nestlé said its infant nutrition division “posted high single-digit growth, with broad-based contributions across brands and geographies”. In China specifically, the product division saw “saw low single-digit growth” in the first nine months of the year.
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Long-term, however, the group said on Wednesday that demand for infant formula in China is being “significantly impacted” by “external trends”, including China’s falling birth rate and the revitalisation of its domestic infant formula industry.
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Volumes of infant formula produced at Askeaton fell 11 per cent last year, according to results for Wyeth Nutritionals Ireland filed recently, continuing a trend of decline over recent years
Nestlé said infant formula production at Askeaton, which first opened back in 1974, would be transferred to two of its other factories, one in Suzhou, in China and the other in Konolfingen, Switzerland.
Minister for Enterprise, Trade and Employment Simon Coveney described the decision as “hugely disappointing” while Siptu representatives have called for the “horrendous” decision to be reversed.
Overall, Nestlé said sales growth slowed down as inflation eased and it put through smaller price increases.
Revenues at the Nescafé coffee maker rose 7.8 per cent on an organic basis in the first nine months of the year, the company said, missing analyst forecasts. A measure of volume posted a fifth consecutive quarterly decline as consumers balked at higher prices.
Nestle reiterated its forecast of 7 per cent to 8 per cent organic sales growth this year. Chief executive Mark Schneider said in July growth should be at the upper end of that range. The company said it expected real internal growth, a gauge of volume, to turn positive in the fourth quarter.
The group also confirmed it had “temporarily shut down” of one of its production plants in Israel as a “precaution”, becoming the first consumer products giant to announce a response to the conflict there. – Additional reporting: Bloomberg, Reuters
