Nestle to maintain Well being Science unit after CEO’s exit, chairman tells paper By Reuters

(Widens distribution.)

ZURICH (Reuters) -Nestle intends to maintain its Well being Science unit, Chairman Paul Bulcke mentioned in a newspaper interview printed on Sunday, after the meals large introduced it was changing its CEO Mark Schneider with firm veteran Laurent Freixe. 

The well being enterprise is among the many Nestle items which some analysts say could possibly be offered over the medium flip.

Requested by the NZZ am Sonntag newspaper whether or not Nestle would retain Nestle Well being Science, Bulcke mentioned: “Completely,” including that the sector was “promising with advantages for society.”

Bulcke’s remarks come after Nestle mentioned on Thursday Schneider would step down after almost eight years on the helm.

“It would not shock us if Nestle Well being Sciences was offered within the medium time period, which might be welcomed by nearly all of traders,” ZKB analysts mentioned in a word on Friday.

Nestle shares have been on a decline since Could 2023 after a sequence of mishaps, earnings misses and downgrades of its income expectations, after hitting a file excessive in January 2022.

Nonetheless, Bulcke instructed the paper Schneider’s departure was “not dictated” by the share value.