Frankly speaking,
I am quite disappointed with this quarter result....
Revenue grew,
but because of rising cost of sales,
so the gross profit reduced.....
Mentioned above that the growth of revenue was contributed by
4.2% growth of local market and 6.8% growth of export market.
The reason of rising cost of sales were the price of sugar, milk powder and coffee beans rose,
and devaluation of Ringgit Malaysia.
All the new products that introduced at this year were listed above.
The management also mentioned that Q4 2016 profit was lower due to heavey marketing investment for an early Chinese New Year 2017,
so they expect Q4 2017 profit will be considerably higher.
The recent price trend of coffee, sugar and smp：
It seems like the price dropped recently,
but management still mentioned about rising cost of sales.
From what I learnt from DLADY about lagging effect,
is it because Nestle still using expensive coffee beans, sugar and smp that bought near the end of 2016?
Even though Nestle didn't perform well this year,
but the price of share still rose to more than RM80,
which meant that a lot of investors still have strong confidence at Nestle.
Will Nestle able to perform well at Q4,
to fulfill everyone's expectation?
I don't provide any buying/selling suggestion above,
please make your own investment decision and be responsible with it.
Recent articles :
How I build my confidence to invest at a company for long term
A book that influenced my life
4 basic types of human personality
Year 2017: The consequence of long term investment
Public Bank 3rd quarter financial result
Other links:
List of articles of October 2017
My current investment portfolio
My self-introduction article
My Twitter : @TheCellist86
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