Nestle to keep Health Science unit after CEO's exit, chairman tells paper

[August 26, 2024]  ZURICH (Reuters) -Nestle intends to keep its Health Science unit, Chairman Paul Bulcke said in a newspaper interview published on Sunday, after the food giant announced it was replacing its CEO Mark Schneider with company veteran Laurent Freixe.

The health business is among the Nestle units which some analysts say could be sold over the medium turn.

Asked by the NZZ am Sonntag newspaper whether Nestle would retain Nestle Health Science, Bulcke said: "Absolutely," adding that the sector was "promising with benefits for society."

Bulcke's remarks come after Nestle said on Thursday Schneider would step down after nearly eight years at the helm.

“It wouldn't surprise us if Nestle Health Sciences was sold in the medium term, which would be welcomed by the majority of investors," ZKB analysts said in a note on Friday.

Nestle shares have been on a decline since May 2023 after a series of mishaps, earnings misses and downgrades of its revenue expectations, after hitting a record high in January 2022.

Nestle Chairman Paul Bulcke attends the Annual General Meeting of Nestle in Ecublens near Lausanne, Switzerland, April 18, 2024. REUTERS/Denis Balibouse/File Photo

Still, Bulcke told the paper Schneider's departure was "not dictated" by the share price.

(Reporting by Oliver HirtWriting by Dave GrahamEditing by Bernadette Baum)

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