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ZURICH (Reuters) – Nestle intends to keep its health sciences unit, Chairman Paul Bulcke said in a newspaper interview published on Sunday, after the food giant announced it would replace Chief Executive Mark Schneider with veteran Laurent Frix.
The healthcare business is among Nestle units that some analysts say could be sold in the medium term.
Asked by the Neue Zürich am Sonntag whether Nestlé would keep its health sciences division, Bulcke said: “Absolutely,” adding that the sector “promises to bring benefits to society.”
Bulcke’s comments come after Nestlé announced on Thursday that Schneider would step down after nearly eight years in the role.
“We would not be surprised if Nestle Health Sciences is sold in the medium term, which would be welcomed by the majority of investors,” analysts at ZKB said in a note on Friday.
Nestle shares have been falling since May 2023 after a series of incidents, the company’s failure to deliver profits, and its lowering of its revenue forecasts, after hitting a record high in January 2022.
However, Bulke told the newspaper that Schneider’s departure was “not determined” by the share price.