Nestlé considers its stake in L’Oréal as a financial investment, and although it is regularly reviewed, there is nothing new to report on the matter, Nestlé chief executive Philipp Navratil said on Tuesday.
‘This participation is a financial investment for us,’ Navratil told Swiss newspaper Finanz und Wirtschaft in an interview, when asked about the participation. “We review this constantly with the board of directors, but there is nothing new to report.”
Navratil, who took the helm in September after a period of unusual turmoil at the company, said Nestlé aims to achieve its target of 4% organic growth as quickly as possible.
He added that he was very confident about the growth prospects in the pet food sector and that he saw ‘incredible opportunities’ in the coffee market.
‘I don’t wonder what else we need to acquire. What we need are innovations to accelerate growth,’ said Navratil.
Nestlé stands by its plans to review its water business – for which it is seeking a strategic partner – and its core vitamins and nutritional supplements division, Navratil added.
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‘We are working to finalize these agreements as quickly as possible, but also with the correct details. Both are complex separations,’ he said.
The chief executive said the planned divestitures would help reduce Nestlé’s debt levels, noting that the company is also reviewing its balance sheet to see what other measures are possible.
Ideally, Nestlé wants cash flow to return to approaching 10 billion Swiss francs, Navratil said.
