大提琴家的股市投资笔记 / The Cellist's Share Investment Note: NESTLE 4th Quarter 2017 Financial Report

Tuesday 27 February 2018

NESTLE 4th Quarter 2017 Financial Report

Today let's talk about NESTLE which shares price sky-rocketed not long ago.

Here is the latest financial result of NESTLE:

Hmmm....
Revenue grew by 2.5% while gross profit grew by 1.1%,
quite disappointing actually....

Then continued to read,
Wow!
Profit almost doubled!

Before feeling too happy,
let's see what were the reasons:

The reason is written above.

Basically,
since the Chinese New year for 2018 is a bit later than last year,
so the Marketing investment can be delayed to Q1 2018,
no need to spend so much on marketing in Q4 2017....

Above also mentioned that the export business dropped by 3.2%,
and the reason is because later phasing of Chinese New Year?
Since Chinese New Year is a bit later, so the Marketing investment was delayed,
consequently the export dropped?

Wah.......
Chinese New Year is really a world wide festival,
it did influence the export segment of company as well,
okay......I learnt(?) a new knowledge.......
.........
Not only I don't understand shares price of NESTLE,
I think I also don't understand the business of NESTLE already.............

Anyway,
if looking at the full year,
the revenue still grew by 3.9%.

Local revenue grew by 4.1% while export grew by 3%.
Above also mentioned that the new products have contributed strong growth to the turnover.
Okay this one I understood,
a lot people bought MAGGI Hot Mealz whenever I was at supermarket......

Lastly is Dividend, the favorite of everyone:

135sen......
5sen more if comparing with previous year~
Atleast the company is trying to distribute more dividends.......

Anyway,
the financial result of this quarter is within my expectation.
The management mentioned before that Q4 2017 result will be better since different phasing of Marketing investment,
I am glad that what they said came true.

So here is the question,
the marketing investment is delayed due to late Chinese New Year,
if next quarter the marketing investment is higher,
then the financial result will................??

Investment is about doing own thinking, making own decision.

Thanks for reading.

I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.