Nestlé has reported stronger-than-expected fourth-quarter sales growth and confirmed plans to accelerate a strategic reset that will see the group double down on four core businesses in Coffee, Petcare, Nutrition and Food & Snacks, while moving to exit ice cream.

The Swiss food giant said organic sales rose 4 per cent in the quarter to 31 December, ahead of market expectations of 3.4 per cent.

For 2026, it expects full-year organic growth of 3 to 4 per cent and an improvement in its underlying trading operating profit margin from 16.1 per cent in 2025.

Under new chief executive Philipp Navratil, Nestlé is seeking to reshape itself into a faster-moving, more focused business, following a turbulent period that included its largest infant formula recall in recent history.

“We are confident that our faster execution of a more focused strategy will deliver sustained improvement through 2026 and beyond,” Navratil said.

As part of the overhaul, Nestlé confirmed that it’s in advanced negotiations to sell its remaining ice cream business to Froneri, the owner of Häagen-Dazs and a joint venture between PAI Partners and Nestlé.

The move would mark a significant step in simplifying the group’s portfolio, allowing management to concentrate capital and operational focus on its strongest global brands, including Nescafé, Maggi and Purina.

Nestlé also said it has concluded the strategic review of its mainstream and value vitamin and supplement brands and will now engage with potential buyers. In addition, it expects to deconsolidate its waters business from 2027 and has begun a formal process with potential partners.

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The strategic pivot comes against a challenging backdrop.

Navratil announced plans in October to cut 16,000 roles over two years, around 6 per cent of Nestlé’s global workforce, as part of a cost-saving drive aimed at freeing up 3bn Swiss francs by 2027.

The company is also contending with US import tariffs, foreign exchange headwinds and consumers under continued pressure from reduced purchasing power.

Nestlé warned that stock shortages and sales returns linked to the infant formula recall will weigh on volumes in 2026.

However, the group maintained that improving execution, sharper resource allocation and prioritisation of higher-return categories will underpin more sustainable growth.