Bulletin: Nestle S.A.'s Monetization Of Part Of Its L'Oreal Stake Will Not Impact Credit Quality

PARIS (S&P Global Ratings) Dec. 8, 2021--S&P Global Ratings today said that Switzerland-based food manufacturing group Nestle S.A.'s announced plans to reduce its stake in French cosmetic group L'Oréal to 20.1% from 23.1% will not impact its credit quality. We expect the sizable proceeds of €8.9 billion to fuel a new share buyback program, which will replace the existing one and stretch over three years from 2022, for a total consideration of Swiss franc 20 billion. In turn, we forecast Nestle's leverage ratio will improve in 2021 but increase in 2022 and 2023 while remaining comfortably below 2.5x. As per the group's latest guidance, we expect full-year 2021 organic sales growth of 6%-7%, coupled with slight but temporary pressure on

...December 8, 2021 PARIS (S&P Global Ratings) Dec. 8, 2021--S&P Global Ratings today said that Switzerland-based food manufacturing group Nestle S.A.'s announced plans to reduce its stake in French cosmetic group L'OrTal to 20.1% from 23.1% will not impact its credit quality. We expect the sizable proceeds of 8.9 billion to fuel a new share buyback program, which will replace the existing one and stretch over three years from 2022, for a total consideration of Swiss franc 20 billion. In turn, we forecast Nestle's leverage ratio will improve in 2021 but increase in 2022 and 2023 while remaining comfortably below 2.5x. As per the group's latest guidance, we expect full-year 2021 organic sales growth of 6%-7%, coupled with slight but temporary pressure on operating margins. This reflects initial time delays between input cost inflation and pricing, as well as the one-off integration costs related to the acquisition of The Bountiful Company....

Bulletin