Nestle will keep the Health Sciences unit after the CEO exits, the chairman tells the paper By Reuters

(Extend the distribution.)

ZURICH (Reuters) – Nestle intends to keep its Health Sciences division, Chairman Paul Bulcke said in an interview with a newspaper published on Sunday, after the food giant announced it was replacing CEO Mark Schneider with company veteran Laurent Freixe.

The health business is among Nestlé's units that some analysts say could be sold in the future.

Asked by the NZZ am Sonntag newspaper whether Nestle will keep Nestle Health Science, Bulcke said: “Absolutely,” adding that the sector “promises benefits for society.”

Bulcke's comments come after Nestle said Thursday that Schneider would step down after nearly eight years at the helm.

“We will not be surprised if Nestle Health Sciences is sold in the medium term, which is acceptable to most investors,” ZKB analysts said in a paper on Friday.

Nestle's shares have been falling since May 2023 after a series of problems, earnings misses and lower revenue expectations, after hitting a record high in January 2022.

However, Bulcke told the newspaper that Schneider's departure was “not determined” by the share price.