Malaysia Stock Analysis Report – NESTLE (4707) | I3investor
Louis Yap Investment

Malaysia Stock Analysis Report – NESTLE (4707)

LouisYap
Publish date: Fri, 15 Nov 2019, 10:20 AM

Malaysia Stock Analysis Report – NESTLE (4707)

 

 

Performance:
Turnover: RM1,400.8mil, YoY fell 2.2%, QoQ rose 4.9%
Net profit: RM 149mil, YoY rose 8.2%, QoQ fell 5%

 

According to the financial report, Nestle has a RM 3.3m one-time loss (Impairment of assets) in 3Q19

 

Compared with the same period of last year, Nestle's receivables fell sharply to RM 1.1m (previous year: RM 6.1m). This represents a lot of progress in the company's receivable management, a good phenomenon.

 

Main Reason:
Compared with the same period of last year, Nestle recorded RM 192m pre-tax profit (up 2.6%) and after-tax profit RM 149m (up 8.2%)

 

Although raw material prices have risen and exchange rates have depreciated, earnings are still growing mainly due to efficient cost control.


In the same period last year, the government abolished GST and led to a particularly high turnover.

 

Nestle also continue introduced new products such as the Starbuck at home series, Nescafe gold, Milo Protein Up, Nestle RTD, Nestle Crunch Wafer Nuts and Pika Pika ice cream.

Compared with the previous quarter, Nestle recorded 1.4b turnover (up 4.9%) in Q3 but the pre-tax profit fell to RM192m, mainly due to commercial expenses.

 

In addition, Q2 also has a one-time profit of about RM19.7m related to the withdrawal of PJ factory.

 

Future Prospect:
Nestle is already a very stable company in Malaysia, and management expects Q4 to achieve stable results.

 

Although the global economy is uncertainty, Nestle's fundamentals are still very strong and stable. The company will be focusing to continue develop the company-based consumers.

 

In addition, the company will also continue to improve efficiency to save more cost, and focusing on investing into their own brands and protecting the company's profitability.

 

Dividend:
Nestle pays a dividend of RM 0.70. Ex-Date 28 Nov 2019, payment date 19 Dec 2019

 

Louis Yap

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https://www.facebook.com/louisinvestment/

 

Web Site:

https://www.wealtharchitect2u.com/

 

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Discussions
Be the first to like this. Showing 3 of 3 comments

thanaraj

i am still waiting for special news from Nestle Malaysia regarding the possibility of NM giving bonus of its shares. Anxiously waiting investor.

2019-11-18 11:19

thanaraj

As an investor in Nestle Malaysia, I wish to congratulate management for its excellent managemeng and giving excellent returns.regards.

2020-02-17 17:47

DickyMe2

They recognise your ball carrying message but unfortunately no extras or tambah-tambah for you.

2020-02-17 17:50

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