Nestle Sees L’Oreal Stake as Financial Investment, CEO Confirms

Post by : Saif Nasser

Nestle has clarified that its stake in cosmetics giant L’Oreal is purely a financial investment, and there are no new developments regarding the holding, CEO Philipp Navratil said in an interview with Swiss newspaper Finanz und Wirtschaft.

“This stake is a financial investment for us,” Navratil explained. “We review it time and again with the board of directors, but there’s nothing new to say.” Nestle’s stake in L’Oreal has often attracted attention, but the company emphasizes that it is not part of strategic operational plans.

Navratil, who became CEO in September after a period of internal turbulence, said Nestle is focused on achieving 4% organic growth as quickly as possible. He highlighted the strong growth prospects in pet food and coffee, calling them “incredible opportunities” for the company’s future.

The CEO also discussed Nestle’s ongoing review of its water business and its mainstream vitamins and nutritional supplements division. Both units are being considered for partnerships or strategic divestitures. Navratil said the process is complex but aims to finalize these deals carefully and quickly.

“These planned divestitures will help reduce Nestle’s debt levels,” Navratil said. The company is also reviewing its balance sheet to explore other measures to strengthen financial stability. The goal is to bring cash flow back towards 10 billion Swiss francs, he added.

Nestle’s focus on innovation over acquisition reflects a strategy to drive growth organically rather than through large-scale purchases. Navratil emphasized the importance of creating new products and expanding existing high-growth areas such as coffee and pet food.

By maintaining a financial stake in L’Oreal while concentrating on its core operations, Nestle aims to balance financial returns with long-term business growth. The company is also committed to strategic actions that improve its financial position while seizing opportunities in key consumer markets.