Nestle to Return up to CHF20 Billion to Shareholders in 2020-22; Nine-Month Sales Rose

   By Pietro Lombardi

Nestle SA (NESN.EB) said Thursday that it will distribute up to 20 billion Swiss francs ($20.07 billion) to its shareholders between 2020 and 2022 and that its nine-month sales rose.

The Swiss consumer-goods giant said it will return money to shareholders primarily through buybacks. This will happen as it keeps its sustainable dividend policy, it added.

"The distribution reflects Nestle's continued strong cash generation as well as significant cash inflows from disposals," it said.

Sales for the period were CHF68.37 billion compared with CHF66.42 billion a year earlier, supported by the performance of its businesses in Brazil and the U.S.

Analysts had expected the company to report sales of CHF68.74 billion for the period, according to a consensus forecast provided by the company.

Organic growth for the period was 3.7%, while real internal growth was 3%.

The company backed its 2019 outlook, including organic sales growth of around 3.5% and an increase in underlying earnings per share in constant currency and capital efficiency

"We continue to see good momentum in our largest market, the United States and very strong growth for Purina PetCare globally," Chief Executive Mark Schneider said.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

October 17, 2019 01:50 ET (05:50 GMT)

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