CONSUMER STAPLES: Mondelez; reiterates bolt-on are the focus
(MDLZ; A3 & Baa1 Pos./BBB) (HSY: A1/A)
Headlines are bit misleading. It is replacing a $6b buyback program that had $2.8b remaining and was due to expire at the end of next year with a $9b program beginning next year. No numbers are given on the pace of buybacks (last guidance was $2b this year, up from $1.5b last year) but it has added "given current market conditions, share repurchase remains an opportunity and key priority". The quarterly $0.47/share dividend is running at normal pace.
More importantly it has said"the company remains committed to an acquisition strategy that is focused on bolt-on assets similar to recent acquisitions of Chipita, Clif and Ricolino." It sounds like it is playing down the leaks it was interested (again) in Hershey - which at ~$50b is most definitely not bolt-on in size.