Nestle (Malaysia) Bhd: Company Profile and SWOT Analysis by ICDResearch

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									Nestle (Malaysia) Berhad

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Nestle (Malaysia) Berhad                                                    Financial Snapshot

                                                                            Operating Performance
Fast Facts
                                                                            The company reported revenue of US$1,246.54
Headquarters Address               Nestle House, Selangor, 46200,Malaysia
                                                                            million during the fiscal year 2010 (2010). The
                                                                            company's revenue grew at a CAGR of 8.71% during
Telephone                          + 60 3 79656000
                                                                            2006–2010, with an annual growth of 17.52% over
                                                                            2009. In 2010, the company recorded an operating
Fax                                + 60 3 79656767                          margin of 12.11%, as against 12.31% in 2009.

Website                            www.nestle.com.my
                                                                            Revenue and Margins
Ticker Symbol, Stock Exchange      NESTLE, Bursa Malaysia

Number of Employees                5,004

Fiscal Year End                    December

Revenue (in US$ million)           1,246.54

Revenue (in MYR million)           4,026.32




SWOT Analysis                                                               Return on Equity

Strengths                          Weaknesses                               The company recorded a return on equity (ROE) of
                                                                            63.81% for 2010, as compared to its peers, PT
Broad product portfolio            Product recalls                          Mayora       Indah       Tbk     (Ticker: MYOR),
                                                                            Chocoladefabriken Lindt & Spruengli AG (Ticker:
                                                                            LISN) and Apollo Food Holdings Berhad (Ticker:
Strong financial performance       Substantial debt                         APOLLO), which recorded ROEs of 23.73%, 14.46%
                                                                            and 11.99% respectively. The company reported a
Strong Support from the Parent                                              net profit margin of 12.11% in 2010.
Company

                                                                            Return on Equity

Opportunities                      Threats

Global demand for dairy products   Evolving consumer preferences

Growing demand for confectionery
                                   Government regulations
market

New plant in Malaysia              Industry consolidation

                                   Raw material prices




                                                                            Liquidity Position

                                                                            The company reported a current ratio of 1.09 in 2010,
                                                                            as compared to its peers, PT Mayora Indah Tbk,
                                                                            Chocoladefabriken Lindt & Spruengli AG and Apollo
                                                                            Food Holdings Berhad, which recorded current ratios
                                                                            of 2.58, 2.60 and 12.78 respectively. As of December
                                                                            2010, the company recorded cash and short-term
                                                                            investments of worth US$15.81 million, against
                                                                            US$0.89 million current debt. The company reported
                                                                            a debt to equity ratio of 0.67 in 2010 as compared to
                                                                            its peers, PT Mayora Indah Tbk, Chocoladefabriken
                                                                            Lindt & Spruengli AG and Apollo Food Holdings
                                                                            Berhad, which recorded debt to equity ratios of 0.65,
                                                                            0.01 and 0.00 respectively.




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Nestle (Malaysia) Berhad - SWOT Profile                                                                            Page 1
Nestle (Malaysia) Berhad

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................16
      2.3.2       Efficiency ..........................................................................................................................................................17
      2.3.3       Capital Expenditure ..........................................................................................................................................18
      2.3.4       Valuation ..........................................................................................................................................................19
      2.3.5       Turnover – Inventory and Asset .......................................................................................................................20
3     SWOT Analysis .................................................................................................
								
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