Highlights
- Nestlé is in advanced negotiations to sell remaining ice cream assets to joint venture partner Froneri .
- New CEO Navratil has announced 16,000 job cuts as part of a broader turnaround strategy .
- Infant formula recall is estimated to cost Nestlé SFr75mn in lost sales and SFr110mn in inventory write-offs.
Navratil said Nestlé would concentrate on coffee, petcare, nutrition, and food and snacks. "We are focusing our portfolio on four businesses, led by our strongest brands, with prioritised resources and a simplified organisation," he told Financial Times.
Nestlé's plans come as consumer goods giants including Unilever and Reckitt have faced pressure to boost growth by selling slower-growing brands and categories.
Froneri was established in 2016 as a joint venture between Nestlé and private equity firm PAI Partners.
The remaining ice cream businesses, located in Canada, Chile, Peru, China, Malaysia and Thailand, are yet to be sold. Froneri was established in 2016 as a joint venture between Nestlé and private equity firm PAI Partners.
Turnaround plan unfolds
Navratil, who took over in September after Laurent Freixe was dismissed over an undisclosed romantic relationship with a direct report, has also announced 16,000 job cuts over the next 18 months.
He has additionally pressed ahead with plans to divest Nestlé's water business and its mainstream vitamins and supplement brands.
The company has already achieved 20 per cent of its targeted SFr3bn in cost savings ahead of schedule.
However, a major infant formula recall has complicated the recovery. Nestlé estimates SFr75mn in lost sales and SFr110mn in inventory write-offs as a result.
The company expects organic growth of between 3 per cent and 4 per cent in 2026. Analysts remain cautious, with Jefferies analyst David Hayes describing the portfolio plans as "little changed" and "undramatic for now." Shares rose more than 3 per cent in morning trading in Zurich.
