Shares in Nestlé SA dropped more than 4% on Thursday after the Swiss food giant reported its slowest sales increase in six years and held back from buying more of its shareholders' stock.
Investors were also concerned by the company's downbeat guidance for the year ahead as it battles with the effects of decelerating emerging markets.
Nestlé Chief Executive Paul Bulcke didn't rule out a buyback later this year, but said the company would continue to prioritize investing in its brands and reward its shareholders through dividends.
"It is not because we have 150 years we have to do a buyback.
Actually it's a bad habit," said Mr. Bulcke, referring to the company's 150th anniversary.
Analysts said they were disappointed with the absence of a buyback, which is often used to reward shareholders.