Kraft Foods Group Inc authorizes stock repurchase worth $3 billion
Kraft Foods Group Inc has authorized a stock buyback program amounting to $3 billion, Bloomberg reported. A North American company, Kraft Foods provides consumer packaged food and beverages for grocery stores in North America. Its products include branded beverages, grocery products, cheese and convenient meals. Maxwell House coffee and Velveeta cheese are just some of the brands of Maxwell House.
The stock repurchase plan is the first for Kraft Foods based in Northfield, Illinois after it became an independent firm in October last year. The repurchase program has no expiration date, according to a statement from the company. The timing as well as the amount of stock buybacks will be determined by the management after it has evaluated market conditions and other factors.
The report quoted the statement of Kraft Foods Chief Executive Officer Tony Vernon who said, "We've made significant progress in creating a cash-focused, return-oriented company. Today's 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 formed last year after the company which was formerly called Kraft Foods Inc changed its name to Mondelez International Inc. The snack foods purveyor spun off its packaged foods business, the report said. Six months ago, Kraft Foods said it would lessen the complexity of managing a dissimilar portfolio by growing to six business units. The expansion would also further its focus on building its brand.
Kraft Foods also said it will be paying a regular quarterly dividend of 52.5 cents per share on January 17. It will be payable to the shareholders of record on December 27, the report said.
The report said the packaged foods company dropped 0.8% in its latest close in New York to $52.44. However, the stock has posted a 15% gains for 2013, the report said.