Nestlé has reiterated that its long-held stake in cosmetics group L’Oréal remains a purely financial investment, with no immediate plans for change, according to comments from Chief Executive Officer Philipp Navratil. While the holding is reviewed regularly at board level, the company sees no new developments to disclose at this stage.
Speaking in an interview with Swiss newspaper Finanz und Wirtschaft, Navratil emphasized that the L’Oréal stake does not form part of Nestlé’s strategic operating agenda. Reviews of the investment are conducted periodically as part of normal governance processes, but the company’s position remains unchanged.
Navratil, who assumed the top role in September following a turbulent period for the food and beverages group, said his immediate focus is on restoring momentum. Nestlé is aiming to reach its target of 4% organic sales growth as quickly as possible, supported by categories where the company sees strong long-term demand.
Pet food and coffee were highlighted as key growth drivers. Navratil said he remains highly confident in pet care, while describing the opportunities in coffee as “incredible,” reflecting continued innovation and premiumization across the segment.
Rather than pursuing major acquisitions, the CEO stressed that innovation will be central to accelerating growth. “What we need are innovations to accelerate growth,” he said, signaling a preference for organic development over expansion through deal-making.
Alongside growth initiatives, Nestlé is continuing to reshape its portfolio. The company is pressing ahead with reviews of its water business, for which it is seeking a strategic partner, as well as its mainstream vitamins and nutritional supplements unit. Navratil noted that both processes are complex separations, but said the group is working to conclude them as efficiently and carefully as possible.
The planned divestitures are expected to support Nestlé’s balance sheet by reducing debt levels. Navratil added that the company is also examining other balance-sheet measures to strengthen its financial position.
Over the medium term, Nestlé aims to bring annual cash flow back toward 10 billion Swiss francs, underscoring a renewed focus on financial discipline alongside growth and portfolio optimization.