Nestle to sell ice cream business as part of reorganization

By Bahattin Gonultas

BERLIN (AA) - Swiss food and drink giant Nestle is in talks to sell its ice cream business as it prioritizes efficiency under a comprehensive strategic transformation plan, according to its fourth-quarter results on Thursday.

Philipp Navratil, the CEO who took over in September 2025, has been pursuing a strict cost management program since taking office.

According to Navratil, coffee, pet products, nutrition and health products, and food and snacks are Nestle's main businesses, and it is in advanced talks to sell off the remaining assets of its ice cream business to UK-based Froneri.

Meanwhile, a planned layoff of 16,000 workers over the next two years make up 6% of the firm’s total workforce of approximately 280,000. The layoff is expected to save the company 1 billion Swiss francs ($1.3 billion) per year by the end of 2027, 20% of which it says has already been achieved.

Sales declined 2% year-on-year in 2025 to $116 billion, below estimates.

Net profit fell 17% to $11.6 billion, while its organic sales – excluding currency influence and acquisitions – climbed 3.5% over the same period, below the estimated 3.38% growth.

*Writing by Emir Yildirim in Istanbul