Nestle Announces Dividend Hike and Reports Mixed 2024 Financial Results

In a surprising move that delighted investors, Nestle S.A. announced a proposal to increase its dividend per share to 3.05 Swiss francs. This news propelled the company's shares to surge by 6% on Thursday, reaching a price of 83.58 Swiss francs by 9:08 am CET.

Financial Performance Highlights

The global food and beverage giant reported an organic sales growth of 2.2% for the year 2024, surpassing analysts' expectations. Despite this positive sales growth, Nestle experienced a 2.9% decline in net profit compared to the previous year, totaling 10.9 billion Swiss francs. Additionally, the company's basic earnings per share saw a slight decrease of 1%, settling at 4.19 Swiss francs.

Market Reaction

The market's response to Nestle's financial announcements and dividend hike was overwhelmingly positive, with a significant jump in stock prices reflecting investor confidence in the company's future prospects.