Nestle Surpasses Q4 Sales Targets, Plans Ice Cream Business Sale Under New Strategy

Food giant Nestle exceeded fourth-quarter sales expectations and announced plans to sell its ice cream division as part of a strategic refocus. The company is concentrating on four core business areas while dealing with challenges from a major infant formula recall.

Food and beverage giant Nestle announced Thursday that it exceeded fourth-quarter sales projections while revealing plans to divest its ice cream operations as part of a strategic business restructuring.

The Swiss-based company, known for producing Maggi seasoning cubes and Nescafe coffee products, will concentrate its efforts on four primary divisions: Coffee, Pet Care, Nutrition, and Food & Snacks. Company officials disclosed they are in final-stage discussions to transfer the ice cream division to Froneri, a partnership between European investment firm PAI Partners and Nestle that currently owns the Haagen-Dazs brand.

CEO Philipp Navratil faces significant challenges in his mission to accelerate operations at the consumer goods corporation, particularly due to the company’s largest infant formula product recall in recent years. The recall has created inventory shortages and product returns that will affect sales volumes through 2026.

“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,” Navratil stated.

Company projections indicate organic sales growth of 3-4% for 2026, with expectations for enhanced underlying trading operating profit margins this year, improving from the 16.1% recorded in 2025.

Navratil, who assumed leadership in September and subsequently announced workforce reductions of 16,000 positions, continues to address obstacles including U.S. import duties, currency fluctuations, and reduced consumer spending power.

The company completed its evaluation of mainstream and budget vitamin and supplement product lines and is actively seeking potential purchasers. Additionally, Nestle anticipates removing its water business from consolidated reporting beginning in 2027, having initiated formal partnership discussions during the first quarter.

Revenue growth excluding currency changes and acquisitions reached 4% for the quarter ending December 31, surpassing analyst predictions of 3.4% growth.