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Nestlé will spend $ 20 billion on new acquisitions or share buybacks

Summary

Nestlé will spend $ 20 billion on new acquisitions or share buybacks Nestlé Shareholders May Raise Another $ 20 Billion Should Nespresso and KitKat Produce Not Find New Businesses to Buy. Nestlé, one of the world’s largest food companies, in […]

Nestlé will spend $ 20 billion on new acquisitions or share buybacks

Nestlé Shareholders May Raise Another $ 20 Billion Should Nespresso and KitKat Produce Not Find New Businesses to Buy.

Nestlé will spend $ 20 billion on new acquisitions or share buybacks

Nestlé, one of the world’s largest food companies, in early October completed the sale of its skin care business for $ 10.3 billion and is now deciding how to deal with the accumulated budget funds.

The company said in its income statement that it could return up to CHF 20 billion ($ 20 billion) to shareholders between 2020 and 2022, mainly through share buybacks..

The company is also stepping up its activities to find deals to buy assets over the next few years, and even created a new division headed by Sanjay Bahadur, the current head of acquisitions and business development, which, he said, will determine «investment value» to the health food, beverage and nutritional supplements sector.

«If there are any significant acquisitions during this period, the amount of money to be distributed to shareholders will be adjusted accordingly.», – said in the message.

The Swiss company’s share price is up 32% this year, a testament to how strongly investors support the position of CEO of the 153-year-old firm, Mark Schneider..

In the first nine months of this year, the company reported a 3.7% increase in sales, in line with analyst estimates.

According to Schneider, the growth in sales was driven by strong momentum in the US, its largest market, and «very strong growth» for Purina PetCare worldwide.

Nestlé reaffirmed its 2019 profit forecast. The company expects sales growth of 3.5% and an increase in earnings per share.