Infant Formula: Tracking consumer sentiment #2; Cabio updates post Nestle IMF recall incident; Friso issue of elevated Lead levels

Research evidence excerpt

Infant Formula: Tracking consumer sentiment #2; Cabio updates post Nestle IMF recall incident; Friso issue of elevated Lead levels

Goldman Sachs China Consumer Staples

parallel imports were advised to check the batch number. In response,

FrieslandCampina announced that an independent 3rd party lab retested the

same batch and found a level of <0.007mg/kg, well below Macau gov’s regulatory

limit and the company also stated that all batches of Friso products officially

imported into mainland China have undergone full pre-market quality testing with

lead consistently reported as non-detected (<0.01mg/kg), well below China’s limit of

0.08mg/kg.

o Friesland has been gaining market share in offline IMF market based on

Nielsen data in Jan-April 2026, and improved ranking on Douyin in recent 618

shopping festival.

n Ausnutria (not covered) announced 1H26 profit warning on 24 July, guiding for

Rmb3.07bn-3.17bn revenue (mid point at Rmb3.12bn, down c.20% yoy) and

-Rmb685-785 net loss (vs. Rmb181mn net profit in 1H25) due to a combination of

phased adjustments and external environmental factors. Excluding a one-time

inventory-related adjustment, non-cash asset impairments and other related

impacts, Ausnutria expects to record a core net operating profit at

Rmb155mn-255mn for 1H26 (mid point at c. Rmb205mn, largely steady yoy).

Ausnutria drove a 40% reduction in total supply chain inventory and the

compression of channel inventory to under 30 days in 1H26, while the company is

also actively streamlining SKUs and optimizing product structures.

o Specialized segments: While standard cow-milk IMF faces intense price

competition, specialized segments like goat milk formula (e.g., Kabrita from

Hyproca) continue to show robust international growth (particularly in North