Nestlé outlines future value creation model including strategic growth priorities and supporting capital structure
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Nestlé S.A. /
Nestlé outlines future value creation model including strategic growth
priorities and supporting capital structure
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This press release is also available in Français (pdf) and Deutsch (pdf)
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Vevey, 27 June 2017
Nestlé outlines future value creation model including strategic growth
priorities and supporting capital structure
Company advancing value creation model based on profitable growth, margin
improvement and capital efficiency
Nestlé today announced another step forward in the implementation of its
comprehensive value creation model. Early in 2017, the company's management,
together with the Nestlé Board of Directors, initiated a comprehensive review of
the company's capital structure and priorities to support and enhance its
ability to deliver on its value creation model. Nestlé regularly revisits its
capital structure to reflect changing market conditions and strategic
priorities. Nestlé's financial strategy aims at striking the right balance
between growth in earnings per share, competitive shareholder returns,
flexibility for external growth and access to financial markets.
As a result of this review, Nestlé determined that capital spending will be
focused particularly on advancing high-growth food and beverage categories such
as coffee, petcare, infant nutrition and bottled water, as well as expanding its
presence in high-growth geographic markets. In line with the company's
nutrition, health and wellness strategy, it will also pursue growth
opportunities in consumer healthcare. Consistent with a disciplined approach to
acquisitions, Nestlé will only prioritize external growth opportunities that fit
within targeted categories and geographies, deliver attractive returns, and
build on the company's leadership position in fast growing food and beverage
categories.
Nestlé's recent announcement that it would explore strategic options for its US
confectionery business is consistent with this overall approach. The company
will continue to adjust its portfolio in line with its strategy and growth
objectives.
Nestlé will also continue to assess opportunities for margin improvement through
targeted efficiency programs that do not undermine the company's performance in
attractive long-term growth categories.
In the context of low interest rates and strong cash flow generation, share
buybacks offer a viable option to create shareholder value. Therefore, as a
result of its review, the Board of Directors approved a share buyback program of
up to CHF 20 billion, to be completed by the end of June 2020. Should any
sizeable acquisitions take place during this period, the share buyback program
will be adapted accordingly.
The program is scheduled to start on 4 July 2017. The volume of monthly share
buybacks will depend on market conditions but is likely to be backloaded in
2019 and 2020 to allow the pursuit of value-creating acquisition opportunities.
Based on current projections, the company expects a net debt to EBITDA ratio of
circa 1.5 in 2020.
The company is committed to maintaining its sustainable dividend practice.
Contacts
Media: Robin Tickle Tel.: +41 21 924 22 00
Investors: Steffen Kindler Tel.: +41 21 924 3509
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Nestlé S.A. via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 27.06.2017 - 18:02 Uhr
Sprache: Deutsch
News-ID 550076
Anzahl Zeichen: 4198
contact information:
Town:
Vevey
Kategorie:
Business News
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