LONDON, U.K.: Nestle is moving to divest its remaining ice cream businesses as new CEO Philipp Navratil presses ahead with efforts to simplify the Swiss food giant's portfolio.

The company said, alongside its fourth-quarter results, that it is in advanced discussions to sell its ice cream operations in Asia, Canada, and parts of Latin America to the owner of Häagen-Dazs, Froneri. Froneri is a joint venture between Nestlé and European private equity firm PAI Partners, in which Nestlé retains a 50 percent stake.

Froneri was valued at about 15 billion euros (US$18 billion), including debt, in October last year when Goldman Sachs and the state-linked Abu Dhabi Investment Authority invested in the business.

Nestlé said it intends to focus on its coffee, pet care, nutrition, and food & snacks divisions as part of the portfolio reshaping. The announcement came as the maker of Maggi stock cubes and Nescafé coffee reported better-than-expected fourth-quarter sales growth.

"We are accelerating executions with a leaner, more performance-driven organisation, and the stage is set for continuous improvement in 2026 and beyond," Navratil told reporters.

Navratil's overhaul efforts have coincided with the largest infant formula recall in Nestlé's recent history. Addressing concerns, he said the company had responded quickly and transparently.

"There might be some impact from the recall, but then I think there is not a long-term reputational issue that we're facing," he said, adding he expected no spillover across products.

Nestle expects full-year 2026 organic sales growth of three to four percent. It forecast that its underlying trading operating profit margin would rise from 16.1 percent in 2025 and that real internal growth (RIG), or sales volume growth, would exceed last year's 0.8 percent.

Navratil, who announced plans to cut 16,000 jobs shortly after taking over in September, is also navigating U.S. import tariffs, currency headwinds, and weaker consumer purchasing power.

The company said it has completed a strategic review of its mainstream and value vitamin and supplement brands and plans to engage potential buyers. It also expects to deconsolidate its water business from 2027 and to begin formal discussions with potential partners in the first quarter.

While analysts have speculated that U.S. frozen foods could face divestment, Navratil said the unit remains in the portfolio as a profitable, cash-generative business.

Nestle reduced net debt to 51.4 billion Swiss francs by the end of December, down from 60 billion in June, supported by strong cash flow. The board will propose increasing the dividend by five centimes to 3.10 Swiss francs per share.

Organic sales rose four percent in the fourth quarter, above expectations of 3.4 percent, driven by price increases of 2.8 percent and RIG of 1.3 percent, both slightly ahead of forecasts.