Europe Movers: Barclays, Essilor Luxottica, Heineken, Michelin, Nestle, Unilever

Inga Muller
13 Feb, 2025
Frankfurt

Eurozone industrial output fell at a faster pace in December. The UK economy unexpectedly expanded in the fourth quarter. 

Germany's consumer price inflation eased in January.

The DAX index increased by 0.8% to 22,317.80, the CAC-40 index edged higher 0.6% to 8,094.08, and the FTSE 100 index declined by 0.8% to 8,738.17.

The yield on 10-year German bonds inched lower to 2.47%, French bonds decreased to 3.17%, the UK gilts moved up to 4.54%, and Italian bonds edged lower to 3.53%.

The euro increased to $1.04; the British pound was higher at $1.25; and the U.S. dollar was lower and traded at 91.81 Swiss cents.

 

Europe Stock Movers

Heineken NV jumped 14.1% to €77.54 after the Dutch brewing company reported a 7.3% increase in net income and announced a two-year stock repurchase plan.

The alcoholic beverage company said net profit advanced 7.3% to €2.7 billion, driven by a 1.6% increase in beer sales volume.

The company said it plans to repurchase its own stock worth €1.5 billion over the next two years.

Revenue in the fourth quarter declined to €7.47 billion from €7.78 billion a year ago, impacted by 3.1% lower sales in Europe.

Full-year 2024 revenue dropped to €35.95 billion from €36.37 billion, profit fell to €1.16 billion from €2.40 billion, and earnings per diluted share decreased to €1.74 from €4.09 a year ago.

Essilor Luxottica SA eased 0.4% to €276.00 after the largest retailer of eyeglasses reported a 4.4% increase in revenue for the fiscal year 2024 ending in December.

Revenue climbed to €26.51 billion from €25.39 billion, net profit increased to €2.49 billion from €2.43 billion, and earnings per diluted share jumped to €5.13 from €5.08 a year ago.

EssilorLuxottica estimated annual revenue growth at constant currencies between €27 billion and €28 billion through to 2026, and operating profit between 19% and 20% as a percentage of revenue.

The company purchased almost 2.5 million shares during 2024, and an additional 4 million shares are set to be purchased by October 29.

As of December 31, a total of 1,480,214 shares were purchased for an average price of €212.22 per share.

Last year, the company agreed to acquire an 80% stake in Germany-based Heidelberg Engineering, a provider of diagnostic solutions, digital surgical technologies, and healthcare IT for clinical ophthalmology. 

Michelin traded flat at €16.10 after the tire manufacturer reported lower sales in fiscal year 2024.

Revenue declined to €27.19 billion from €28.34 billion, net income dropped to €1.89 billion from €1.98 billion, and earnings per share fell to €2.65 from €2.77 a year ago.

The company paid dividends of €1.38 per share, compared to €1.35 per share a year earlier.

In the original equipment segment, global demand ended 2024 down 2%, with a 7% decline in Europe, a 2% decline in North and Central America, and a 3% increase in China.

Demand in Asia, excluding China and including Japan and South Korea, also weakened over the year, declining by 8%.

Michelin was selected as a supplier to equip the Ferrari F80, and the company renewed its partnership with Porsche to support Indonesian natural rubber farmers.

Nestle S.A. traded flat at CHF 78.78 after the chocolate and food maker reported a decline in revenue and earnings in fiscal year 2024.

Revenue declined 1.8% to CHF 91.35 billion from CHF 92.99 billion, net profit fell 2.6% to CHF 10.88 billion from CHF 11.21 billion, and basic earnings per share dropped 1% to CHF 4.19 from CHF 4.23 a year ago.

The company’s share buyback program contributed 1.1% to the underlying earnings per share change, net of finance costs.

Nestlé doesn’t plan to initiate a new share buyback program in 2025.

The company proposed a dividend of CHF 3.05 per share, an increase of 5 centimes, payable on April 24 to holders on record as of April 17.

Barclays Bank Plc. gained 0.6% to 309.65 pence after the British bank reported a 24% increase in total income for the fourth quarter ending in December.

Total income jumped to £6.96 billion from £5.59 billion, profit before tax surged to £1.66 billion from £110 million, and basic earnings per share rose to 6.5 pence from a loss of 0.7 pence a year ago.

For the full year 2024, total income increased to £26.79 billion from £25.38 billion, profit before tax increased to £8.11 billion from £6.56 billion, and earnings per diluted share rose to 34.8 pence from 26.9 pence a year ago.

Barclays plans to return at least £10 billion of capital to shareholders between 2024 and 2026 through dividends and share buybacks, as dividends are payable semi-annually.

Unilever Plc. eased 0.15% to 4,744 pence after the consumer goods company reported a 1.9% increase in sales in fiscal 2024 and signaled spinning off its ice cream business.

Sales increased 1.9% to €60.76 billion from €59.60 billion, net profit declined 10.8% to €6.37 billion from €7.14 billion, and earnings per diluted share fell 10.6% to €2.29 from €2.56 a year ago.

The company proposed to pay quarterly dividends on March 28, June 13, September 12, and December 5 to shareholders on record as of February 28, May 16, August 15, and November 7, respectively.