Nestle beats Q4 sales expectations, plans ice cream sale as CEO sharpens focus

By Alexander Marrow

LONDON, Feb 19 (Reuters) - Nestle reported better than expected fourth-quarter sales growth on Thursday and said it was sharpening its focus to four businesses led by its strongest brands, a drive that includes plans to sell off its remaining ice cream business.

Nestle, the maker of Maggi stock cubes and Nescafe coffee, said it would focus on its Coffee, Petcare, Nutrition and Food & Snacks units and was in advanced negotiations to sell the ice cream business to Haagen-Dazs owner Froneri, which is a joint venture between European buyout firm PAI Partners and Nestle.

The biggest infant formula recall in Nestle's recent history has hampered new CEO Philipp Navratil's efforts to transform the packaged goods giant into a faster-moving firm. Nestle said stock shortages and sales returns would impact on 2026 volumes.

"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 said.

Nestle was expecting 2026 full-year organic sales to be in the range of 3-4%, and forecast an improvement in its underlying trading operating profit margin this year, from 16.1% in 2025.

Navratil, who announced plans to cut 16,000 jobs soon after taking the helm in September, was already battling the negative impacts from U.S. import tariffs and foreign exchange, as well as consumers with less purchasing power.

Nestle said it had concluded the strategic review of its mainstream and value vitamin and supplement brands and was looking to engage with potential buyers. It said it also expects to deconsolidate its waters business from 2027, and began the formal process with potential partners in the first quarter.

Organic sales, which exclude the impact of currency movements and acquisitions, rose 4% in the quarter ended December 31, above expectations for 3.4% growth.

(Reporting by Alexander MarrowEditing by Dave Graham)