Nestlé To Keep Health Science Unit After CEO's Exit

Nestlé intends to keep its Health Science unit, Chairman Paul Bulcke said in a newspaper interview published recently, after the food giant announced it was replacing its CEO Mark Schneider with company veteran Laurent Freixe, Oliver Hirt reported for Reuters.

The health business is among the Nestlé units that some analysts say could be sold over the medium term. I Photo: Nestlé Health Science

The health business is among the Nestlé units that some analysts say could be sold over the medium term.

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

Bulcke's remarks come after Nestlé said that Schneider would step down after nearly eight years at the helm.

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

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

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