Friday, 14 February 2025 Reading time : 2 minutes

After a series of setbacks, the Swiss food giant is making positive headlines this week: the publication of its earnings on Thursday was well received by the stock market, sending the share price up 6.2%. As a result, the equities have recovered from its historic lows and are now worth more than CHF 80.00 for the first time since November 2024. 

Nestlé slightly beat market expectations with its full-year results and reaffirmed its outlook for 2025, reports Bloomberg. The group also plans to raise its dividend and cut costs. In a first reaction, investors see the results as a step in the right direction, as the stock market reaction shows. CEO Laurent Freixe, who took over last September, now has to prove that this is not just a flash in the pan. 

However, the market environment remains difficult for the food manufacturer. Nestlé expects consumer demand to remain subdued in the current year. This limits the ability to pass on rising raw material prices to customers. The company therefore intends to counter high cocoa and coffee prices with cost savings.

Even if the turnaround is successful, there is still a long way to go. Over the last five years, the stocks have lost more than 11% (total return), while the SMI has gained more than 35%.

Barrier Reverse Convertibles with Nestlé as underlying

5.10% p.a. BRC on Nestle, Novartis, Roche
Barrier: 70%
Valor: 140 252 133

7.80% p.a. BRC on Nestle, Richemont, Holcim
Barrier: 68%
Valor: 140 252 182

9.00% p.a. BRC on Nestle, Sika, UBS, Lonza
Barrier: 65%
Valor: 140 252 181

Indicative terms

 

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements. The present document has not been drawn up by the research department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document. If securities are mentioned in the communication, the base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS, and from www.zkb.ch/finanzinformationen.
© 2025 Zürcher Kantonalbank. All rights reserved.