Nestle to Accelerate Share Buybacks Over Next Three Years
September 26 2017 - 1:38AM
Dow Jones News
By Anthony Shevlin
Nestle SA (NESN.EB) said Tuesday it will accelerate its share
buyback plan and confirmed its 2020 organic growth target.
The Swiss consumer goods company said it will spread the
buybacks evenly over the next three years, having allocated 20
billion Swiss francs ($20.62 billion) for mergers, acquisitons and
buybacks in June. It previously said it would conduct most of the
buybacks in 2019 and 2020.
The planned buybacks would increase the returns to shareholders
of more than CHF100 billion seen over the past ten years, including
CHF43 billion in buybacks, the company said.
Nestle also set a target of achieving an underlying trading
operating profit margin of 17.5% to 18.5% by 2020, compared with
16% in 2016.
It confirmed its goal of reaching mid-single digit organic
growth by 2020.
Chief Executive Mark Schneider said the company is intensifying
its focus on innovation, operational efficiency and portfolio
management.
Nestle has already taken steps to adjust its portfolio, having
recently invested in Blue Bottle Coffee, Sweet Earth and
Freshly.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com
(END) Dow Jones Newswires
September 26, 2017 02:23 ET (06:23 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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