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Nestle CFO Focuses on Investment Rather Than Buyback Program

Nestle CFO Focuses on Investment Rather Than Buyback Program

The chief financial officer of Swiss food conglomerate Nestle SA told reporters recently that the company plans to prioritize investment over its introduction of a new program to buy back shares, MarketWatch reports.

 

The chief financial officer of Swiss food conglomerate Nestle SA told reporters recently that the company plans to prioritize investment over its introduction of a new program to buy back shares, MarketWatch reports.

CFO Jim Singh noted that Nestle is seeking to expand its operations into different parts of the world, while at the same time increasing innovation. He added that the company will look to potential large-scale merger and acquisition opportunities if they present themselves, but would not say whether Nestle was in on the bidding for Pfizer's nutrition unit, according to MarketWatch.

Singh noted that a new share buyback program is no longer on the radar for now.

"The objective of cash generated is to invest in the business and pay dividends. We don't see the need to leverage ourselves to have another share buyback," Singh said. "This doesn't mean we won't have one in the future, but in the short term, we don't see a need for another buyback program."

Net profit for the Swiss company surged 8 percent in 2011, but the company said recently that it expects a tough 2012, according to The Associated Press.

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