(Bloomberg) — Abbott Laboratories expects its nutrition business to grow above its 4% to 6% pre-pandemic range this year, boosted by demand from older customers, CEO Robert Ford told analysts on an earnings conference call Wednesday.

Revenue from its nutrition business, which is known for its baby formula and Ensure adult shakes and powders, grew 9.3% in 2023 after shrinking 10% in 2022, Abbott said. The average analyst estimate is for a 4.7% increase this year. 

The medical-devices manufacturer’s shares fell as much as 3.7%, as analysts said investors may have been disappointed by the in-line profit and sales figures. 

Abbott said it continued to have the largest market share in the US infant formula market. The company lost its leading position after recalling millions of baby formula cans in early 2022 due to contamination problems. It announced restarted production at the affected factory in August 2022 and said in October it had regained the top position. The pediatric nutritional business grew by 13% in 2023, and will grow 5% this year, according to the average analyst forecast. 

The adult segment, which grew 6% in 2023, will be the business’s growth driver, Ford said on the call. Sales of its adult segment is expected to grow 5% in 2025, outpacing pediatrics’ 3.6%.   

An aging population and new products give Abbott the chance to “break out of that higher end” of the 4% to 6% range, he said. The company is developing a nutritional drink for GLP-1 weight loss drug users. 

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