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Nestle to keep Health Science unit after CEO's exit, chairman tells paper
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Nestle to keep Health Science unit after CEO's exit, chairman tells paper
Aug 25, 2024 6:30 AM

(Widens distribution.)

ZURICH, Aug 25 (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.

Still, Bulcke told the paper Schneider's departure was "not

dictated" by the share price.

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