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Nestlé Chairman Paul Bulcke has affirmed the company's intention to retain its Health Science unit, countering sale speculation.
Nestlé’s Chairman Paul Bulcke has affirmed the company’s intention to retain its Health Science unit, countering speculation about a potential sale. In an interview with NZZ am Sonntag published on Sunday, Bulcke emphasized the strategic value of the Health Science division, describing it as a promising sector with significant benefits for society.
The announcement of Bulcke’s comments follows Nestlé’s recent decision to replace CEO Mark Schneider with Laurent Freixe, a company veteran. Schneider’s departure comes after nearly eight years at the helm, a period marked by various challenges for the food giant.
Analysts had speculated that Nestlé might consider selling its Health Science unit as part of a broader strategy to streamline its operations. Analysts from ZKB noted that such a move might be well-received by investors, given the company’s recent difficulties. “It wouldn’t surprise us if Nestlé Health Sciences was sold in the medium term, which most investors would welcome,” they remarked.
Nestlé’s shares have declined since May 2023 following setbacks, including earnings misses, revenue expectation downgrades, and other operational issues. This decline contrasts with the company’s peak performance, which reached a record high in January 2022.
Despite these challenges, Bulcke reassured that the company’s share price did not influence the decision to replace Schneider. He emphasized that the strategic focus on retaining the Health Science unit reflects a commitment to long-term growth and societal benefits rather than short-term financial performance.
As Nestlé navigates this period of transition and reevaluation, Bulcke’s statements aim to reassure stakeholders about the company’s direction and commitment to its Health Science division. The company’s focus on this sector aligns with its broader strategy of leveraging health science for sustainable growth and positive societal impact.
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