Nestle's Dividend Hike Sparks Market Enthusiasm

In a surprising turn of events, Nestle S.A. saw its shares jump by 6% this Thursday. The leap came after the company announced a proposed increase in the dividend per share to 3.05 Swiss francs, a move that has evidently pleased investors.

Financial Performance Highlights

Despite a challenging year, Nestle reported an organic sales growth of 2.2% for 2024, surpassing analysts' expectations. However, it wasn't all good news as the company's net profit experienced a slight decline of 2.9% from the previous year, settling at 10.9 billion Swiss francs. Additionally, basic earnings per share saw a 1% decrease to 4.19 Swiss francs.

Market Reaction

The announcement led to a significant uptick in Nestle's stock value, which rose by 6.09% to 83.58 Swiss francs by 9:08 am CET, showcasing the market's positive reception to the dividend hike and overall financial health of the company.