Nestlé CEO Philipp Navratil Says Debt Reduction Will Not Involve L'Oréal Sale

Nestlé CEO Philipp Navratil outlined a plan to lower the company’s net debt, which stood at CHF 56.3 billion at the end of June, without selling its roughly 20 % stake in L'Oréal. He said the debt‑to‑EBITDA ratio should settle between 2 and 3, targeting about 2.85 by the end of 2025.

The debt‑reduction strategy will rely on divesting non‑core assets such as the water business and smaller holdings like Blue Bottle Coffee, while keeping the L'Oréal investment. Nestlé’s capital allocation priorities are organic growth first, followed by dividend payouts and debt repayment; acquisitions and share‑buybacks are not a focus at present.