Nestlé to offload ice cream brands in portfolio simplification

(Sharecast News) - Swiss foods giant Nestlé announced on Thursday that it is planning to offload its ice cream business to focus on four core areas of coffee, petcare, nutrition and food/snacks. Nestlé said it was in "advanced negations" to sell its remaining ice cream brands, which include Häagen-Dazs, Maxibon and Mövenpick, to its Froneri 50/50 joint venture with PAI Partners.

The company will also integrate its nutrition and health science division into a single business to strengthen categorisation and drive synergies, as part of plans to sharpen the portfolio around the four key businesses.

The firm is now engaging with potential buyers for some private label vitamins, minerals and supplements brands in the health science arm.

The announcements came as the company delivered better-than-expected sales numbers for the fourth quarter, with organic growth of 4% coming in ahead of the 3.4% consensus forecast.

That helped drive full-year organic growth to 3.5%, up from 2.2% in 2024, though reported sales fell 2.0% to CHF89.45bn.

Underlying trading operating profit slumped 8.4% as the underlying trading operating profit margin fell by 110 basis points to 16.1%, with underlying earnings per share falling 7.3% to CHF4.42.

Nevertheless, the board proposed a dividend of CHF3.10 per share, up 1.6% over last year.

Looking ahead, Nestlé expects organic sales to rise between 3% and 4%,while the underlying trading operating profit margin is expected to improve year-on-year.

"I am encouraged by our performance during 2025, which reflects the targeted actions we have taken in a difficult external environment," said chief executive Philipp Navratil.

"We are accelerating our strategy. We are focusing our portfolio on four businesses, led by our strongest brands, with prioritised resources and a simplified organisation. [...] While there is more to be done, we are confident that our faster execution of a more focused strategy will deliver sustained improvement through 2026 and beyond."