Nestlé Australia cold on ice cream business sale rumours

Nestlé Australia has refused to confirm rumours that it is looking to exit its Nestlé Peters ice cream business in the country, after press reports today suggested a potential AUS $330m (€261m) sale.

The Wall Street Journal quoted “two people familiar with the matter” who said the business was for sale, and added that Nestle Australia was being advised by J.P Morgan and could realise the 12x earnings before interest and tax (EBIT) sale figure cited above.

But asked about the story, a Nestlé Australia spokeswoman told DairyReporter.com:“Our comment is as follows – Nestlé does not comment on rumour or speculation.”

Brands sold in Australia include Icy Pole, Skinny Cow, Monaco Bar, Drumstick, Billabong, Connoisseur, and Eskimo Pie, and according to the paper, Nestlé Peters is expected to post earnings before interest and tax (EBIT) of AUS $27.5m in 2012.