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    NESTLE 2017-18 Annual Report Analysis

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    Aamil Rafi Khan
    NESTLE reported strong financial results for the year ended December 2018. Operating income rose 12.8% while operating profit increased 24.9%. Net profit grew 31.2% due to higher revenues and improved margins. Current assets rose 20% and current liabilities increased 24.3%, while net worth grew 7.4%. Key financial ratios like return on equity and assets improved, demonstrating increased profitability. The share price is up 34.8% over the last year, outperforming the broader market.

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    NESTLE 2017-18 Annual Report Analysis

    Uploaded by

    Aamil Rafi Khan
    616 views6 pages
    NESTLE reported strong financial results for the year ended December 2018. Operating income rose 12.8% while operating profit increased 24.9%. Net profit grew 31.2% due to higher revenues and improved margins. Current assets rose 20% and current liabilities increased 24.3%, while net worth grew 7.4%. Key financial ratios like return on equity and assets improved, demonstrating increased profitability. The share price is up 34.8% over the last year, outperforming the broader market.

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    NESTLE reported strong financial results for the year ended December 2018. Operating income rose 12.8% while operating profit increased 24.9%. Net profit grew 31.2% due to higher revenues and improved margins. Current assets rose 20% and current liabilities increased 24.3%, while net worth grew 7.4%. Key financial ratios like return on equity and assets improved, demonstrating increased profitability. The share price is up 34.8% over the last year, outperforming the broader market.

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    616 views6 pages

    NESTLE 2017-18 Annual Report Analysis

    Uploaded by

    Aamil Rafi Khan
    NESTLE reported strong financial results for the year ended December 2018. Operating income rose 12.8% while operating profit increased 24.9%. Net profit grew 31.2% due to higher revenues and improved margins. Current assets rose 20% and current liabilities increased 24.3%, while net worth grew 7.4%. Key financial ratios like return on equity and assets improved, demonstrating increased profitability. The share price is up 34.8% over the last year, outperforming the broader market.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    NESTLE 2017-18 Annual Report Analysis

    Mon, 25 Mar

    NESTLE has announced its results for the year ended December 2018. Let us have
    a look at the detailed performance review of the company during FY17-18.
    NESTLE Income Statement Analysis
     Operating income during the year rose 12.8% on a year-on-year (YoY)
    basis.
     The company's operating profit increased by 24.9% YoY during the fiscal.
    Operating profit margins witnessed a fall and down at 23.2% in CY18 as
    against 20.9% in CY17.
     Depreciation charges decreased by 1.9% and finance costs increased by
    21.8% YoY, respectively.
     Other income grew by 46.3% YoY.
     Net profit for the year grew by 31.2% YoY.
     Net profit margins during the year grew from 12.0% in CY17 to 13.9% in
    CY18.

    NESTLE Income Statement 2017-18


    No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
    Net Sales Rs m 100,096 112,923 12.8%
    Other income Rs m 1,769 2,589 46.3%
    Total Revenues Rs m 101,865 115,512 13.4%
    Gross profit Rs m 20,965 26,177 24.9%
    Depreciation Rs m 3,423 3,357 -1.9%
    Interest Rs m 919 1,120 21.8%
    Profit before tax Rs m 18,393 24,290 32.1%
    Tax Rs m 6,141 8,220 33.9%
    Profit after tax Rs m 12,252 16,069 31.2%
    Gross profit margin % 20.9 23.2
    Effective tax rate % 33.4 33.8
    Net profit margin % 12.0 13.9
    * Results Consolidated
    Interim results exclude extraordinary / exceptional items
    Source: Company Reports, Regulatory Filings, Equitymaster
    NESTLE Balance Sheet Analysis
     The company's current liabilities during CY18 stood at Rs 19 billion as
    compared to Rs 15 billion in CY17, thereby witnessing an increase of 24.3%.
     Long-term debt down at Rs 351 million as compared to Rs 351 million
    during CY17, a fall of 0.0%.
     Current assets rose 20% and stood at Rs 47 billion, while fixed assets fell
    8% and stood at Rs 25 billion in CY18.
     Overall, the total assets and liabilities for CY18 stood at Rs 81 billion as
    against Rs 74 billion during CY17, thereby witnessing a growth of 10%.

    NESTLE Balance Sheet as on December 2018


    No. of Mths Year Ending 12 Dec-17* 12 Dec-18* % Change
    Networth Rs m 34,206 36,737 7.4
     
    Current Liabilities Rs m 14,927 18,550 24.3
    Long-term Debt Rs m 351 351 0.0
    Total Liabilities Rs m 73,626 80,881 9.9
     
    Current assets Rs m 39,374 47,370 20.3
    Fixed Assets Rs m 27,103 25,058 -7.5
    Total Assets Rs m 73,626 80,881 9.9
    * Results Consolidated
    Interim results exclude extraordinary / exceptional items
    Source: Company Reports, Regulatory Filings, Equitymaster

    NESTLE Cash Flow Statement Analysis


     NESTLE's cash flow from operating activities (CFO) during CY18 stood at
    Rs 21 billion, an improvement of 12.9% on a YoY basis.
     Cash flow from investing activities (CFI) during CY18 stood at Rs -524
    million on a YoY basis.
     Cash flow from financial activities (CFF) during CY18 stood at Rs -13 billion
    on a YoY basis.
     Overall, net cash flows for the company during CY18 stood at Rs 7 billion
    from the Rs 7 billion net cash flows seen during CY17.

    NESTLE Cash Flow Statement 2017-18


    Particulars No. of 12 12 %
    months
    Dec- Change
    Year Ending Dec-18
    17
    Cash Flow from Operating 18,17
    Rs m 20,525 12.9%
    Activities 8
    Cash Flow from Investing
    Rs m -1,306 -524 -
    Activities
    Cash Flow from Financing -
    Rs m -9,966 -
    Activities 13,174
    Net Cash Flow Rs m 6,906 6,826 -1.2%
    * Results Consolidated
    Interim results exclude extraordinary / exceptional items
    Source: Company Reports, Regulatory Filings, Equitymaster

    Current Valuations for NESTLE


     The trailing twelve-month earnings per share (EPS) of the company stands
    at Rs 166.7, an improvement from the EPS of Rs 127.1 recorded last year.
     The price to earnings (P/E) ratio, at the current price of Rs 10,511.6, stands
    at 63.1 times its trailing twelve months earnings.
     The price to book value (P/BV) ratio at current price levels stands at 24.4
    times, while the price to sales ratio stands at 7.9 times.
     The company's price to cash flow (P/CF) ratio stood at 52.2 times its end-
    of-year operating cash flow earnings.

    Per Share Data/Valuations


    No. of Mths Year Ending 12 Dec-17* 12 Dec-18*
    Sales per share (Unadj.) Rs 1,038.1 1,171.2
    TTM Earnings per share Rs 127.1 166.7
    Diluted earnings per share Rs 127.1 166.7
    Price to Cash Flow x 64.7 52.2
    TTM P/E ratio x 63.1 63.1
    Price / Book Value ratio x 19.5 24.4
    Market Cap Rs m 1,013,528 1,013,528
    Dividends per share (Unadj.) Rs 86.0 115.0
    * Results Consolidated
    Interim results exclude extraordinary / exceptional items
    Source: Company Reports, Regulatory Filings, Equitymaster
    Ratio Analysis for NESTLE
     Solvency Ratios

    Current Ratio: The company's current ratio deteriorated and stood at 2.6x during
    CY18, from 2.6x during CY17. The current ratio measures the company's ability to
    pay short-term and long-term obligations.
    Interest Coverage Ratio: The company's interest coverage ratio improved and stood
    at 22.7x during CY18, from 21.0x during CY17. The interest coverage ratio of a
    company states how easily a company can pay its interest expense on outstanding
    debt. A higher ratio is preferable.
     Profitability Ratios

    Return on Equity (ROE): The ROE for the company improved and stood at 43.7%
    during CY18, from 35.8% during CY18. The ROE measures the ability of a firm to
    generate profits from its shareholders capital in the company.
    Return on Capital Employed (ROCE): The ROCE for the company improved and
    stood at 68.5% during CY18, from 55.9% during CY17. The ROCE measures the
    ability of a firm to generate profits from its total capital (shareholder capital plus debt
    capital) employed in the company.
    Return on Assets (ROA): The ROA of the company improved and stood at 21.3%
    during CY18, from 17.9% during CY17. The ROA measures how efficiently the
    company uses its assets to generate earnings.
    Key Ratio Analysis
    No. of Mths Year Ending 12 Dec-17* 12 Dec-18*
    Current ratio x 2.6 2.6
    Debtors’ Days Days 3 4
    Interest coverage x 21.0 22.7
    Debt to equity ratio x 0.0 0.0
    Return on assets % 17.9 21.3
    Return on equity % 35.8 43.7
    Return on capital employed % 55.9 68.5
    * Results Consolidated
    Interim results exclude extraordinary / exceptional items
    Source: Company Reports, Regulatory Filings, Equitymaster

    To see how NESTLE has performed over the last 5 years, please visit here.
    NESTLE Share Price Performance

    Over the last one year, NESTLE share price has moved up from Rs 7,797.6 to Rs
    10,511.6, registering a gain of Rs 2,714.1 or around 34.8%.
    Overall, the S&P BSE SENSEX is up 14.6% over the year.
    NESTLE Announces Quarterly Results (1QFY20); Net Profit Up 10.8%(Quarterly Result Update)
    Aug 5, 2019 | Updated on Aug 5, 2019

    For the quarter ended June 2019, NESTLE has posted a net profit of Rs 4 bn (up 10.8% YoY). Sales
    on the other hand came in at Rs 30 bn (up 11.2% YoY). Read on for a complete analysis of
    NESTLE's quarterly results.

    NESTLE Announces Quarterly Results (4QFY19); Net Profit Up 9.3%(Quarterly Result Update)
    May 15, 2019 | Updated on May 15, 2019

    For the quarter ended March 2019, NESTLE has posted a net profit of Rs 5 bn (up 9.3% YoY). Sales
    on the other hand came in at Rs 30 bn (up 8.9% YoY). Read on for a complete analysis of NESTLE's
    quarterly results.

    NESTLE 2016-17 Annual Report Analysis(Annual Result Update)


    Dec 20, 2018 | Updated on Dec 20, 2018

    Here's an analysis of the annual report of NESTLE for 2016-17. It includes a full income statement,
    balance sheet and cash flow analysis of NESTLE. Also includes updates on the valuation of NESTLE.

    NESTLE 2016-17 Annual Report Analysis(Annual Result Update)


    Sep 17, 2018 | Updated on Sep 17, 2018

    Here's an analysis of the annual report of NESTLE for 2016-17. It includes a full income statement,
    balance sheet and cash flow analysis of NESTLE. Also includes updates on the valuation of NESTLE.

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