Shares in food giant Nestlé have reportedly taken a downward turn in the wake of releasing its six-month results, which showed sales drop 2.6% for the period, standing at CHF 43.1 billion across the business, reports Neill Barston.

The news saw the value of its shares drop by 7%, according to the FT, with concerns surrounding challenging market conditions that has seen a recent management turnover seeking to address its negative performance.

Philpp Navratil had been brought in recently to lead that turnaround, though inflated ingredients costs surrounding key cocoa and coffee markets have impacted its performance ,as well as other core factors including wider economic and geopolitical uncertainties around the world.

The company cited organic growth figures of 3.6% for the first half of the year, and real internal growth of 1.5%, as signs that the business was placing itself on a stronger footing.

Notably, the Swiss-headquartered business issues an optimistic forecast of organic growth between 3-4% for 2026, which it noted had been backed by increased investment. It has also outlined key initiative including a 50:50 joint venture into waters and premium beverages.

Furthermore, it noted that its mainstream vitamins, minerals & supplements (VMS) and ice cream businesses also now classified as ‘assets held for sale’ which are anticipated to bolster its finances.

However, with net profits declining by 31% to 3.4 billion for the first six months of the years, come in the wake of its announcement of making a total of 16,000 job cuts from its global workforce (around 6%), with operations including some of its UK production facilities being impacted by the move, including. at its flagship KitKat production site in York. 

Philipp Navratil, Nestlé CEO commented: “Our RIG-led growth strategy is delivering, with organic growth of 3.7% and RIG of 1.8% in Q2, making steady progress towards our medium-term guidance. Emerging markets growth accelerated, and we delivered solid performance in developed markets. We are increasing and prioritizing our investment behind our leading brands and growth platforms, sharpening our portfolio focus and driving further efficiencies to reinvest. While the external environment remains uncertain, we are taking actions to accelerate consistent growth.”