Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on NESTLE SA-REG. We currently have 7 research reports from 2 professional analysts.
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Q3 disappoints, FY guidance adjusted downwards
20 Oct 16
Nestle’s 9M update: sales grew organically +3.3% (cons. +3.6%, Q3: +2.9% – a very weak quarter) with real internal growth (RIG) up 2.5% and pricing 0.8%. On reported figures, sales were up +1%. OG by division: the Americas +4.5% (cons. +4.7%, both price and RIG driven), EMENA +2.2% (cons. +2.5%, RIG driven, negative pricing), AOA 2.8% (cons. +2.9%, RIG driven), Waters +4.2% (cons. +3.9%, RIG driven, negative pricing), Nestle Nutrition +1.3% (cons. +1%, RIG driven), Other Businesses +4.6% (cons. 4.7%, RIG driven). In Q3, the Americas and EMENA performed more softly than in Q2; other divisions improved their performance. Emerging markets slowed to 5.1% OG; developed markets remain unchanged. For the FY, Nestle expects organic top-line growth of c. 3.5% (down from around 4%) with an in margins at constant FX and including restructuring charges.
Q2 with weak OG but better margins, expects acceleration in H2
18 Aug 16
Nestlé’s H1 update: organic revenue was up +3.5% (cons. +3.7%, Q2: 3.1%) with RIG +2.8% and pricing of +0.6%. Reported figures were up 0.7% (FX:-2%, net acquisitions: -0.8%). OG by division: the Americas +5.1% (cons. +4%, both price and RIG driven), EMENA +2.6% (cons. +2.9%, RIG driven, negative pricing), AOA 2.3% (cons. +2.1%, RIG driven, negative pricing), Waters +4.2% (cons. 5.4%, RIG driven, negative pricing), Nestle Nutrition +1.3% (cons. +2.8%, RIG driven), Other Businesses +4.2% (cons. 5.1%, RIG driven). Developed markets recorded OG of +1.9% whereas emerging markets grew +5.4%. The trading operating margin for period was up +30bp (cons. +20bp) on the back of an improvement in cost and portfolio management, premiumisation and input tailwinds. All divisions improved their margins with the exception of the Americas. The group maintains its FY guidance: organic growth in line with 2015 (4.2%) with improvements in margins and EPS at constant currencies.
A decent Q1
14 Apr 16
Nestlé released its Q1 trading update. The OG stood at 3.9% (cons. +3.6%) driven strongly by real internal growth (RIG) of 3% whereas pricing stood at 0.9%. The negative FX headwinds were 2.8%. Net acquisitions stood at -1%. OG by division: the Americas +5.5% (cons. +4.2%, price and RIG driven), EMENA +3% (cons. +1.8%, RIG driven), AOA 2.3% (cons. +2.4%, RIG driven), Waters +5.3% (cons. 5.2%, RIG driven), Nestle Nutrition +2.6% (cons. +3.4%, RIG driven), Other Businesses +5.2% (cons. 5%). The developed markets grew 2.5% organically (driven uniquely by +2.9% RIG with some negative pricing). Emerging markets grew +5.6% (both RIG and price driven). The group confirmed its FY outlook (organic growth in line with 2015 with improvements in margins and EPS at constant currencies).
Disappointing FY and bearish guidance
18 Feb 16
Nestle released its FY results. Revenue grew organically by 4.2% (in line with consensus, RIG: +2.2% and pricing: +2%). On reported figures, sales were down 3.1% (FX: -7.4%). Net acquisitions stood at 0.1%. Sales OG by zone: AMS +5.5%, EMENA +3.7%, AOA +0.5%, Nestle Waters: +6.7%, Nestle Nutrition +3.1% and Others +5.3%. The operating margin was up 10bp on organic basis and down 20bp (15.1%) on a reported basis due to the strong Swiss franc. Net profit was down to CHF9.1bn due to the lower income from JVs as well as other operating expenses linked to rebate adjustments in Nestlé Skin Health in the US. The proposed dividend is CHF2.25. In Q4, sales grew organically by 4.2% (with RIG: +2.8% and pricing: 1.4%). Q4 OG by zone: AMS +4.6%, EMENA +2.5%, AOA +3.5%, Nestle Waters: +6.4%, Nestle Nutrition +2.2% and Others +4.7%. For 2016, Nestle expects a similar trading environment to FY15's with even softer pricing. The group expects to deliver organic growth in line with 2015 with improvements in margins and EPS at constant currencies.
Nestlé publishes disappointing Q3 numbers and lowers and its FY guidance
16 Oct 15
Nestle released its 9M trading statement. Organic growth stood at 4.2% (cons. at 4.7%, 3.6% in Q3) with pricing at 2.2% and RIG at 2% (cons. at 2.1%). FX impacted by -6.7% whereas net acquisitions added 0.4% to sales. On a reported basis, sales were down -2.1% for 9M and -5.7% in Q3. Organic growth by operating segment in Q3: Zone AMS +7%, Zone EMENA +4.7%, Zone AOA -3.1%, Nestlé Waters +9.8%, Nestlé Nutrition +2.4% (tough comparable coupled with slightly lower growth on a global basis) and Other (Nestlé professional, Nespresso, Nestlé Skin Science & health) +0.3%. The weaker than expected results are linked to AOA's poor performance in Q3 (withdrawal of Maggie Noodles and slower pace of recovery in China) as well as a one-off charge linked to a more conservative approach to the Nestlé Skin Health prescription drug rebate policy in the US. The company revised downward its full-year guidance to 4.5% OG (around 5% previously vs. 4.5% in FY14).
Panmure Research - Consumer Staples 11-09-15
11 Sep 15
The consumer staples sector continues to trade on well above average historic and market average multiples despite a lack of earnings growth over 2014-15. This has been due to being perceived as ‘low risk' and cash generative with the ability to continue to pay and grow dividends. However cashflow cover of dividends has declined, and a further round of emerging market currency devaluations could have a severe impact on the ability to grow dividends unless they can grow earnings in the developed world. In the short term the performance of the sector is likely to be overshadowed by the potential interest rate increase in the US. We would have an in-line weighting in the UK consumer staples sector. Within that we remain positive on the tobacco subsector and Hilton Foods Group and retain the Sell rating on Associated British Foods. We move PZ Cussons from Sell to Hold
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Panmure Morning Note 19-01-2017
19 Jan 17
Today’s H1FY17 pre-close is more than just solid; it demonstrates FIF’s resilience. As flagged at September’s FY16 results and, as demonstrated by both November’s reassuring AGM trading statement and today’s encouraging H1FY17’s pre-close, FIF is both well-prepared and well-equipped to offset considerable input cost pressures and maintain its progress on multiple levels, whilst the scope for accretive M&A in a highly fragmented market remains an added attraction. We maintain our BUY.
Agriculture starts FY2017 ahead of expectations
10 Jan 17
Carr’s Group’s (CARR LN, HOLD, T/P 175p) issued a statement today which confirmed that the company continues to trade in line with the Board’s expectations for the current financial year. The announcement refers to 18- week period which ended on 7th January and is the first pre-AGM statement since the disposal of the flour milling business for £36m.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
19 Dec 16
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