THE WHAT? Nestlé has reaffirmed that its stake in L’Oréal is held purely as a financial investment, with no change to its position or strategy regarding the shares.
THE DETAILS Speaking to Swiss newspaper Finanz und Wirtschaft, Nestlé CEO Philipp Navratil said the company regularly reviews its holding in L’Oréal at board level but has no new developments to disclose. Navratil, who assumed the role in September following a period of leadership instability, emphasised that the stake does not form part of Nestlé’s strategic growth agenda.
Instead, the group remains focused on accelerating organic growth, with Navratil reiterating Nestlé’s target of achieving 4 percent organic growth as quickly as possible. He highlighted pet food and coffee as key growth drivers, while stressing that innovation, rather than acquisitions, will underpin future expansion.
THE WHY? Navratil’s comments come as Nestlé continues to reshape its portfolio, including an ongoing review of its water business and its mainstream vitamins and nutritional supplements division, both of which are expected to be divested. The planned separations are intended to reduce debt and strengthen the company’s balance sheet, with Nestlé aiming to restore annual cash flow to approximately 10 billion Swiss francs. Clarifying the passive nature of its L’Oréal stake helps set boundaries around Nestlé’s capital allocation priorities amid broader restructuring efforts.
Source: Reuters
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