Nestle to return billions to investors through share buyback programme
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Nestle said today it plans to return Swiss Fr 20bn (£15.7bn) to investors by 2022.
The company’s new share buyback programme, which will start in January, follows the $10bn (£7.8bn) sale of its skin care division this month to a consortium of investors.
The Kitkat-maker said its organic growth slowed slightly from 3.9 per cent in the previous quarter to 3.7 per cent in the third quarter.
Read more: Nestle confirms talks to sell £8bn skincare unit to EQT-led consortium
Nestle chief executive Mark Schneider said: “We are pleased with our nine-month results and have made further progress towards our 2020 financial goals. We continue to see good momentum in our largest market, the United States and very strong growth for Purina Petcare globally.”
He added: ”With prudent investments and a disciplined approach to acquisitions our value creation model is generating profitable growth and attractive cash returns for our shareholders.”
Nestle said its rollout of Starbucks products had continued, and now reaches 34 countries, while Purina Petcare, a pet food business, has grown globally, with an estimated annual revenue of $106.1m.
Read more: Unilever misses estimates amid slowdown in emerging markets
The company also announced the reorganisation of its bottled water business after a disappointing set of results.
Nestle said it would no longer manage it water arm, which posted anaemic organic growth of 0.5 per cent for the nine-month period, as a global business.
Instead it will split it into three geographic zones. Nestle’s bottled water brands include San Pellegrino and Perrier.
“This move, subject to employee consultation where required, will help utilise Nestle’s strong local expertise, better respond to rapidly changing consumer preferences, accelerate profitable growth and create synergies,” it said.