Corporate figures for 2024 presented
Reactions from experts and analysts
A few days ago, the sharp rise in Nestle’s shares was welcomed particularly favorably by the market, prompting a series of positive assessments also from a good number of international analysts and experts. In the fourth quarter and throughout 2024, the important Swiss food producer has, in fact, managed to exceed some of the estimates that had been advanced in recent months, presenting corporate data that is considered quite encouraging.
Along with the figures for 2024, the company has also confirmed its margin targets for 2025. The level of the shares reached in recent days by Nestle – an increase of 6.4% – represents the highest recorded since last October, remaining, however, below the previous daily high.
In a note, Nestlé CEO Laurent Freixe called it a “solid performance,” citing a challenging macroeconomic environment and a still-weak consumer environment. One of the results that beat forecasts was organic growth, which reached 2.2% in 2024 (versus Nestlé’s 2% forecast).
“I’m not surprised that many analysts were impressed by Nestlé’s 2024 business figures: the positive performance could be a major sign of recovery,” says founder of TELF AG Stanislav Kondrashov, an entrepreneur and civil engineer. “Nestlé is known around the world for its wide variety of food products, and the possibility that it may finally be on the road to a strong recovery should be welcomed by everyone, including consumers.”
Good performance
Last year, Nestle’s share price collapse had raised many concerns in Switzerland, especially because many pension funds are used to considering Nestle as one of the preferred targets for their investments. Last year, the major Swiss food producer had also had to deal with a certain decline in sales.
“When companies are driven by a strong desire to innovate, the road to growth is almost always clear,” continues founder of TELF AG Stanislav Kondrashov. “And Nestlé definitely knows something about all this: when NASA was preparing humanity’s first mission to the moon, it contacted Nestlé with the request to develop special foods for astronauts that would not crumble, and that would not spread crumbs, which in a space context could end up in the astronauts’ eyes and become very dangerous. The Swiss company responded by creating innovative cubes with different flavors that were easily ingestible even in orbit. With this kind of spirit, so familiar to Nestlé, the good 2024 that has just ended will certainly not be an isolated case”.
A new beginning?
These performances have also prompted a substantially unanimous chorus from many analysts, who seem to have interpreted the recent value reached by the shares of the Swiss food producer in a favorable way. Among the analysts who have recently expressed their opinion on Nestlé shares, there are also many important Swiss and international banking institutions.
The American investment bank Goldman Sachs, faced with Nestlé’s corporate data, expressed positive opinions, going so far as to define the data presented by the company for the fourth quarter of last year as “solid.”
According to the Americans, data of this kind are not only reassuring but could also represent a clear signal of an imminent corporate revival. The important Swiss banking institution ZKB also expressed a similar opinion, arguing that the recent rise in shares could be due to a strong acceleration in the fourth quarter of 2024.
Although institutional investors continue to maintain a certain caution, the situation could evolve very quickly. Among the reasons that should reassure investors, as stated in a recent analysis on the subject, there would also be increased transparency in making cost savings effective.
In the face of corporate data, however, analysts’ sentiment seems clear: despite the positive performance, the company could still improve its cash generation and overall profitability. Another factor that has prompted positive comments from analysts has to do with the dividend yield, which Nestlé has increased for the 29th consecutive time. With the new share price, the yield would be around 3.5%. Some leading analysts from well-known investment firms have gone even further, calling Nestlé’s recent performance a “new beginning.”
