Kraft Foods said today that it plans to set aside $3 billion worth of funds with a view to creating a stock repurchasing programme.
The programme, which has no expiration date, is the company's first stock repurchase programme since it became an independent public company in October 2012.
The American grocery manufacturing and processing conglomerate, which is headquartered in Illinois, owns a range of high profile international brands such as Velveeta cheese, Maxwell House coffee and Capri Sun.
“We’ve made significant progress in creating a cash-focused, return-oriented company,” Kraft Foods Chief Executive Officer Tony Vernon said in the statement. "The announcement reflects our commitment to disciplined capital management and the desire to balance investments in our businesses to generate profitable growth while at the same time returning capital to shareholders.”
Kraft Foods was created last year when the company formerly known as Kraft Foods Inc. changed its name to Mondelez International Inc., a snack foods purveyor, and spun off its packaged-foods business.
The company declared a regular quarterly dividend of 52.5 cents a share, payable on 17 Jan of next year to shareholders of record on 27 Dec. © 2013 - European Supermarket Magazine by Enda Dowling