Albendazole is a very safe and well tolerated drug with very few side effects and no major contraindications. It is often given safely with other drugs. The recommended dose is 400 mg for any person 2 years or older. Heavy infections with whipworm (Trichuris) may benefit from 3 days treatment. Albendzole is not recommended to be given to children < 12 months; the use of albendazole for children aged 12-23 months is unclear, but it has been given. The tablets are usually flavoured, so can be chewed. Young children should ideally be given a syrup or the tablet should be crushed and mixed with water. Young children should not be given whole tablets as they can cause choking.
The drug is poorly absorbed from the gut which is important because it needs to act on worms living in the gut, such as Ascaris and hookworms in the small intestine and whipworms (Trichuris) lower down the gut in the large intestine. Albendazole and mebendazole both affect the metabolism of worms so that they die; other deworming drugs such as pyrantel paralyse worms so that they are expelled from the gut by normal peristalsis.
As large numbers of worms can cause malabsorption, blood loss (in the case of hookworms and Trichuris) and loss of appetite, treating them may lead to better absorption of nutrients and an improved appetite.
If a child is suspected of having a large number of Ascaris, perhaps because many eggs have been seen by examining a faecal sample under a miscoscope, the child should be monitored after treatment for 48h. Very rarely Ascaris can get tangled and cause intestinal obstruction.
I am not aware of international guidelines that say that a malnourished child should not be given albendazole at the first visit. I doubt that there have been clinical trials of the effect of giving albendazole at the first or second visit, but national guidelines should be followed or clinical judgement applied, especially if intestinal worms are known to be common.