Nestle in talks to sell ice cream arm as formula recall squeezes profits

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said: “Nestle’s full-year results this morning offered shareholders some welcome relief after weeks of hand-wringing over the infant formula recall saga.

“Fourth-quarter organic growth of four per cent comfortably beat expectations, driven by volume gains the company called its best in over a decade, with PetCare a particular bright spot.

“The formula crisis looks set to impact growth far less than many had feared, and guidance of three-to-four per cent organic growth for 2026 should help settle some nerves.

“New leadership is also wasting no time putting its stamp on the business, announcing a sharper focus on Coffee, Pet and Nutrition while signalling the exit of non-core assets, including ice cream – a clear statement of intent that should be well received.”