Nestlé CEO wants to reduce debt without selling L’Oréal stake

Nestlé chief wants to reduce debt without selling L'Oréal Keystone-SDA

According to CEO Philipp Navratil, Nestlé intends to reduce its debt by selling off non-core assets and through its own efforts. Selling its multi-billion stake in the cosmetics group L'Oréal is not on the cards for the time being.

“Of course, we need to reduce our debt,” said Navratil in an interview with the finance website “The Market” published online on Friday. The sale of the water business, as well as smaller divestments such as that of Blue Bottle Coffee, are part of the effort to achieve this goal.

The ratio of net debt to EBITDA should “be roughly halfway between 2 and 3”, according to the Nestlé CEO. At the end of 2025, the ratio stood at around 2.85. In absolute terms, Nestlé reported net debt of CHF56.3 billion Swiss francs at the end of June 2026. A year ago, the figure stood at CHF60.0 billion.

However, the group CEO ruled out selling the company’s approximately 20% stake in L’Oréal. Whilst “theoretically, one could significantly reduce the debt”, Navratil conceded. “But it would be a shortcut.” Instead, Nestlé intends to “do our homework” and “reduce debt organically, whilst also better positioning the portfolio and the group”. L’Oréal remains “a financial investment and we are happy shareholders”.

Nestlé has set clear priorities for capital allocation. Investments in organic growth are “the top priority”, followed by dividends and debt reduction. Acquisitions and share buybacks, by contrast, are not a priority at present.

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Translated from German, reviewed by an English Department journalist.