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NSRGY - Nestle SA News Story

$120.99 0.7  0.5%

Last Trade - 07/05/21

Consumer Defensives
Large Cap
Market Cap £244.13bn
Enterprise Value £269.68bn
Revenue £67.00bn
Position in Universe 25th / 6858

BREAKINGVIEWS-Capital Calls: L'Oreal’s cash pile is a nice problem to have

Thu 15th April, 2021 6:22pm
(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
    LONDON, April 15 (Reuters Breakingviews) - Concise insights
on global finance in the Covid-19 era.
WHEN YOU’RE AGON. French make-up giant L'Oreal  OREP.PA  is
sitting pretty. First-quarter sales rose
 10% year-on-year to 7.6 billion euros, led by the
dermatological cosmetics division and China. 
    The only wrinkle is outgoing Chief Executive Jean-Paul Agon
has been making money faster than the Lancome mascara maker can
spend it*:nL8N2E94AJ. Net cash is forecast to rise to almost 6
billion euros this year from 4 billion euros last year,
Refinitiv data shows. That could enable some aggressive
dealmaking. Bringing leverage up to 2 times EBITDA would give
the French group 30 billion euros to play with. It could also
put its shares in drugmaker Sanofi  SASY.PA  on the block,
currently worth 10 billion euros. That would be enough to
acquire Japanese rival Shiseido  4911.T  or clean up its
shareholder structure by buying back most of Nestlé’s  NESN.S 
44 billion euro stake. With the stock already up 9% this year,
Agon’s successor Nicolas Hieronimus has time to decide. (By
Dasha Afanasieva)
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| Editing by Neil Unmack and Amanda Gomez)
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