NESTLE MALAYSIA at a glance

 

NESTLE at a glance

 

Nestle Malaysia

 Revenue, PBT, EPS and share price.

Nestle

 

Nestle’s FY18 earnings to grow at steady pace

Nestle’s FY18 earnings to grow at steady pace
February 26, 2018, Monday


KUCHING: Nestle (Malaysia) Bhd’s (Nestle) financial year 2018 (FY18) earnings are projected to grow at a steady pace, while analysts are optimistic on the group’s short to medium term outlook.

Following Nestle’s fourth quarter of 2017 (4Q17) results’ briefing, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) expected a higher revenue growth for FY18 driven by a more aggressive advertising and promotional (A&P) expenses.

“Due to the recent stabilising commodity prices and strengthening ringgit, more spending is expected to be channelled to A&P activities to boost customer purchase,” it said.

MIDF Research also expected that the A&P expenses for FY18 will be significantly higher than FY17. As per Nestle’s filing on Bursa Malaysia, the group recorded a profit after tax and minority interest of RM645.8 million for the 12 months ended December 31, 2017.

“In addition, effective tax rate is expected to be sustained at 21 per cent going forward as most tax incentives such as the Halal tax incentives had been fully claimed.”

All in, the research arm expected that earnings will remain at a steady state of growth in FY18.

Meanwhile, the research arm of Kenanga Investment Bank Bhd (Kenanga Research) highlighted that the brand equity for the Nestle product portfolio continues to be the largest asset for the group.

“This is demonstrated by the group’s ability to register sales growth despite bleak consumer sentiment indicators,” it said.

With the turnaround potentially insight, Kenanga Research believed Nestle would be well positioned to enjoy a head start in growth trajectory ahead of their competitors, especially as a market leader in food and beverage (F&B) products.

The research arm also believed that investors may have already bought into the stock in anticipation of the better outlook ahead.

However, with the surge in buying interest in the stock, dividend yields are currently less attractive at 2.4 per cent and 2.9 per cent for FY18 and FY19, respectively. This was down from circa three per cent previously.


http://www.theborneopost.com/2018/02/26/nestles-fy18-earnings-to-grow-at-steady-pace/

MSCI GLOBAL SMALL CAP and GLOBAL STANDARD INDEXES November 30, 2017.

• MSCI Small Cap Indexes List of Additions/Deletions

MSCI MALAYSIA INDEX

Additions
ECO WORLD INTERNATIONAL
GEORGE KENT
HENGYUAN REFINING CO
PETRON MALAYSIA


 Deletions
 CB INDUSTRIAL PRODUCT
JAYA TIASA HOLDINGS
JCY INTERNATIONAL
MEDIA PRIMA
PRESTARIANG
TROPICANA CORPORATION
TUNE PROTECT GROUP

https://www.msci.com/eqb/gimi/smallcap/MSCI_Nov17_SCPublicList.pdf

• MSCI Global Standard Indexes List of Additions/Deletions

MSCI MALAYSIA INDEX

Additions
NESTLE (MALAYSIA)
PRESS METAL ALUMINIUM
SP SETIA

Deletions
None

https://www.msci.com/eqb/gimi/stdindex/MSCI_Nov17_STPublicList.pdf

https://www.msci.com/index-review

Nestle Malaysia 21.8.2017

Nestle
21.8.2017

INCOME STATEMENT
Millions
Year …. T4Q
Revenues …. 5,168
PBT …. 770
PAT …. 620
EPS (RM) …. 2.6445
No of shr (m) …. 235.0

PBT Marg …. 14.90%
NP Marg …. 12.00%


--------------------------


Nestle
21.8.2017

INCOME STATEMENT
Millions
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
Revenues …. 5,064 …. 4,838 …. 4,809 …. 4,788 …. 4,556
GrProf …. 1,997 …. 1,865 …. 1,700 …. 1,698 …. 1,553
EBIT …. 807 …. 795 …. 727 …. 737 …. 652
Int Exp …. 34 …. 34 …. 26 …. 22 …. 20
PBT …. 766 …. 727 …. 701 …. 719 …. 638
Tax …. 129 …. 137 …. 151 …. 157 …. 132
PAT …. 637 …. 591 …. 550 …. 562 …. 505
EPS (Dil) …. 2.72 …. 2.52 …. 2.35 …. 2.40 …. 2.16
No of shr (Dil) …. 235 …. 235 …. 235 …. 235 …. 235



GP Marg …. 39.44% …. 38.55% …. 35.35% …. 35.46% …. 34.09%
PBT Marg …. 15.13% …. 15.03% …. 14.58% …. 15.02% …. 14.00%
NP Marg …. 12.58% …. 12.22% …. 11.44% …. 11.74% …. 11.08%
EBIT/Int …. 23.74 …. 23.38 …. 27.96 …. 33.50 …. 32.60



BALANCE SHEET
Millions
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
CA …. 1,030 …. 1,015 …. 893 …. 930 …. 841
NCA …. 1,558 …. 1,473 …. 1,410 …. 1,159 …. 1,064
TA …. 2,588 …. 2,488 …. 2,303 …. 2,089 …. 1,905

CL …. 1,577 …. 1,525 …. 1,306 …. 1,072 …. 929
NCL …. 364 …. 255 …. 220 …. 200 …. 225
TL …. 1,941 …. 1,780 …. 1,526 …. 1,272 …. 1,154
Eq …. 647 …. 709 …. 777 …. 816 …. 751
TL+Eq …. 2,588 …. 2,488 …. 2,303 …. 2,089 …. 1,905



Cash …. 24 …. 14 …. 16 …. 15 …. 35
ST Debt …. 184 …. 356 …. 84 …. 86 …. 4
LT Debt …. 93 …. 96 …. 90 …. 92 …. 95
Total Debt …. 277 …. 452 …. 174 …. 178 …. 99

Inventories …. 455 …. 414 …. 429 …. 409 …. 411
AR …. 453 …. 498 …. 395 …. 506 …. 395
AP …. 1,091 …. 921 …. 778 …. 695 …. 689

CA-CL …. (547) …. (510) …. (413) …. (142) …. (88)

TD/Eq …. 42.8% …. 63.8% …. 22.4% …. 21.8% …. 13.2%
TD/TA …. 10.7% …. 18.2% …. 7.6% …. 8.5% …. 5.2%
TL/TA …. 75.0% …. 71.5% …. 66.3% …. 60.9% …. 60.6%

CR …. 0.65 …. 0.67 …. 0.68 …. 0.87 …. 0.91
QR …. 0.36 …. 0.39 …. 0.36 …. 0.49 …. 0.46



CE …. 1,035 …. 977 …. 1,013 …. 1,032 …. 1,011

Average of 2 years
CE (Avg) …. 1,006 …. 995 …. 1,023 …. 1,022 ….
TA (Avg) …. 2,538 …. 2,396 …. 2,196 …. 1,997 ….
Eq (Avg) …. 678 …. 743 …. 797 …. 784 ….






CASH FLOW STATEMENT
Thousands
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
Net Inc …. 766,494 …. 727,711 …. 701,187 …. 719,054 …. 637,668
D&A …. 133,193 …. 125,845 …. 112,210 …. 108,971 …. 101,601
FFO …. 768,931 …. 728,371 …. 688,397 …. 658,848 …. 629,553
CWC …. 121,459 …. (10,411) …. 144,388 …. (11,230) …. 179,897
NetOCF …. 890,390 …. 717,960 …. 832,785 …. 647,618 …. 809,450

Capex …. (123,136) …. (193,249) …. (361,008) …. (212,217) …. (158,442)

FCF …. 767,254 …. 526,776 …. 471,777 …. 435,401 …. 651,008
Dividends …. (633,150) …. (715,225) …. (551,075) …. (504,175) …. (422,100)
RE …. 133,344 …. 12,486 …. 150,112 …. 214,879 …. 215,568
Owner's Cash …. 776,551 …. 660,307 …. 452,389 …. 615,808 …. 580,827
FFO less Capex …. 645,795 …. 535,122 …. 327,389 …. 446,631 …. 471,111


NetOCF/Net Inc …. 116.2% …. 98.7% …. 118.8% …. 90.1% …. 126.9%
FCF/Net Inc …. 100.1% …. 72.4% …. 67.3% …. 60.6% …. 102.1%
Capex/Net Inc …. 16.1% …. 26.6% …. 51.5% …. 29.5% …. 24.8%
Capex/NetOCF …. 13.8% …. 26.9% …. 43.3% …. 32.8% …. 19.6%
Capex/D&A …. 92.4% …. 153.6% …. 321.7% …. 194.7% …. 155.9%
DPO ratio …. 82.6% …. 98.3% …. 78.6% …. 70.1% …. 66.2%



VALUATION
Year …. 2016 …. 2015 …. 2014 …. 2013 …. 2012
Share Price RM …. 78.20 …. 73.40 …. 68.50 …. 68.00 …. 62.84
Market cap (m) …. 18,377 …. 17,249 …. 16,098 …. 15,980 …. 14,767

ROCE …. 80.2% …. 79.9% …. 71.1% …. 72.1% ….
ROA …. 25.1% …. 24.7% …. 25.0% …. 28.1% ….
ROE …. 94.0% …. 79.5% …. 69.1% …. 71.7% ….

FCF/Revenues …. 15.2% …. 10.9% …. 9.8% …. 9.1% …. 14.3%

FCF/Mkt Cap …. 4.2% …. 3.1% …. 2.9% …. 2.7% …. 4.4%
DY …. 3.4% …. 4.1% …. 3.4% …. 3.2% …. 2.9%

Mkt. cap/Equity (P/B) …. 28.40 …. 24.33 …. 20.72 …. 19.58 …. 19.66
Mkt. cap/Net Inc (PE) …. 28.85 …. 29.19 …. 29.27 …. 28.43 …. 29.24



Today's Price RM …. 84.58
Shares (m) …. 235.000
Market cap (m) today …. 19,876

Mkt. cap/Equity (P/B) …. 30.72
Mkt. cap/Net Inc (PE) …. 32.05

Nestle Quarterly Report History Qtr Financial Revenue … PBT  … PAT … PBT  … No Quarter (RM,000) … (RM,000) … (RM,000) … Margin … 2 30-Jun-17 1,283,630 … 212,542 162,070 … 16.6% … 1 31-Mar-17 1,371,882 … 290,740 230,431 … 21.2% … 4 31-Dec-16 1,249,882 … 81,493 66,942 … 6.5% … 3 30-Sep-16 1,262,997 … 185,247 160,712 … 14.7% … 2 30-Jun-16 1,237,165 … 223,897 188,797 … 18.1% … 1 31-Mar-16 1,313,462 … 275,858 220,677 … 21.0% … 4 31-Dec-15 1,198,942 … 118,677 99,789 … 9.9% … 3 30-Sep-15 1,218,385 … 205,225 179,161 … 16.8% … 2 30-Jun-15 1,142,901 … 159,556 123,903 … 14.0% … 1 31-Mar-15 1,277,729 … 244,252 187,878 … 19.1% … 4 31-Dec-14 1,108,762 … 117,496 98,304 … 10.6% … 3 30-Sep-14 1,157,295 … 189,820 150,075 … 16.4% … No. Financial ttm-Rev … ttm-PBT  … ttm-PAT … ttm-PBT  Qtr. Quarter (RM,000) … (RM,000) … (RM,000) … Margin 2 31-Dec-17 5,168,391 … 770,022 … 620,155 … 14.9% 1 31-Dec-17 5,121,926 … 781,377 … 646,882 … 15.3% 4 31-Dec-16 5,063,506 … 766,495 … 637,128 … 15.1% 3 31-Dec-16 5,012,566 … 803,679 … 669,975 … 16.0% 2 31-Dec-16 4,967,954 … 823,657 … 688,424 … 16.6% 1 31-Dec-16 4,873,690 … 759,316 … 623,530 … 15.6% 4 31-Dec-15 4,837,957 … 727,710 … 590,731 … 15.0% 3 31-Dec-15 4,747,777 … 726,529 … 589,246 … 15.3% 2 31-Dec-15 4,686,687 … 711,124 … 560,160 … 15.2% 1 31-Dec-15 … … … 4 31-Dec-14 … … … 3 31-Dec-14 … … … Qtr Financial EPS  … DPS … NTA … ttm-EPS … ttm-DPS No Quarter (Cent) … (Cent) … (RM) … (Cent) … (Cent) 2 30-Jun-17 69.11 … 70 … 3.04 … 264.45 … 270 1 31-Mar-17 98.26 … 0 … 3.68 … 275.85 … 270 4 31-Dec-16 28.55 … 130 … 2.76 … 271.7 … 270 3 30-Sep-16 68.53 … 70 … 3.18 … 285.7 … 270 2 30-Jun-16 80.51 … 70 … 3.08 … 293.57 … 265 1 31-Mar-16 94.11 … 0 … 3.6 … 265.9 … 260 4 31-Dec-15 42.55 … 130 … 3.02 … 251.91 … 260 3 30-Sep-15 76.4 … 65 … 3.45 … 251.28 … 305 2 30-Jun-15 52.84 … 65 … 2.95 … 238.88 … 240 1 31-Mar-15 80.12 … 0 … 4.11 … #REF! … 4 31-Dec-14 41.92 … 175 … 3.31 … #REF! … 3 30-Sep-14 64 … 0 … 3.07 … #REF! …