Nestlé has affirmed its commitment to retaining its Health Science unit, according to Chairman Paul Bulcke in a recent interview. This declaration comes on the heels of Nestlé’s announcement that CEO Mark Schneider will be stepping down, to be succeeded by company veteran Laurent Freixe.
The Health Science division has been under scrutiny by analysts, with some speculating that it could be a candidate for divestiture in the medium term. However, Bulcke, in his interview with the NZZ am Sonntag newspaper, dispelled these notions, stating, “Absolutely,” when asked if Nestlé would keep the unit. He further emphasized the promising future of the sector, noting its significant benefits for society.
Bulcke’s comments were made following the announcement on Thursday of Schneider’s impending departure after nearly eight years leading the company.
Despite recent analyst notes, such as one from ZKB suggesting that the sale of Nestlé Health Science could be well-received by investors, Bulcke reiterated that the decision to retain the unit aligns with the company’s strategic focus and is not influenced by short-term market fluctuations.
Nestlé’s shares have faced challenges, with a notable decline since May 2023, following several setbacks, earnings misses, and revised revenue expectations. This dip contrasts sharply with the company’s record high in January 2022. Despite this, Bulcke assured that Schneider’s exit is not a consequence of the share price performance, indicating that the transition is part of a broader strategic plan.
