Nestle CEO: Stake in L'Oreal is Financial Investment

• Nestle seeks to restore cash flow to 10 billion Swiss francs through strategic divestitures and balance sheet optimization
• CEO sees 'incredible opportunities' in coffee and strong growth prospects in pet food, prioritizing innovation over new acquisitions
• Company is actively searching for strategic partners for both its water business and mainstream vitamins/nutritional supplements division

Nestle CEO Addresses L'Oreal Stake and Strategic Priorities

Nestle CEO Philipp Navratil confirmed the company's stake in L'Oreal remains a financial investment with no immediate changes planned. Speaking to Finanz und Wirtschaft on December 23, Navratil stated the position is regularly reviewed by the board but offered no new developments.

The CEO, who assumed leadership in September following internal turbulence, reaffirmed Nestle's commitment to achieving 4% organic growth "as fast as possible." He expressed strong confidence in growth opportunities within pet food and described "incredible opportunities" in the coffee segment.

Navratil emphasized innovation over acquisitions as the key growth driver, stating: "I'm not asking myself what else we need to acquire. What we need are innovations to accelerate growth."

Regarding ongoing divestitures, Nestle continues pursuing strategic partnerships for its water business and plans to sell its mainstream vitamins and nutritional supplements division. Navratil acknowledged these are "complex separations" but aims to finalize deals quickly while ensuring proper execution.

The planned divestitures are expected to help reduce Nestle's debt levels. The company is conducting a comprehensive balance sheet review to identify additional measures for improving financial flexibility. Navratil indicated the company's goal is to restore cash flow to approximately 10 billion Swiss francs.

These strategic moves reflect Nestle's focus on streamlining operations, reducing debt, and concentrating resources on core growth areas under new leadership. The emphasis on organic growth through innovation rather than acquisitions signals a shift in strategy as the company works to optimize its portfolio and financial position.