NESTLE Annual Report 2017

Let me clarify first,
I only write down those things which I think is important for me,
so is not covering everything in the annual report,
if you really interested at NESTLE,
is better to read the annual report by yourself~

Let's start now.

First thing I saw from the annual report,
was the financial performance that improved year by year,
 but the rate of improvement...........

Management's comment about the full year result:

Basically for year 2017,
local business grew by 4.1% while export grew by 3%.

The growth of export,
was contributed by the growth of other NESTLE affiliated countries,
especially in ASEAN region~

Seems like new products are the main engine of growth,
what new products?
Please read the above paragraph.

The growth strategy of NESTLE is FIT.
Fuel to Grow, Innovate to Grow, Transform to Grow.

E-Commerce business increased by 250%,
NESTLE is doing good at online business too.

One good thing I saw from NESTLE is that the company encouraged the employees for new innovation ideas:

No wonder NESTLE able to release new products every year~

As for current products,
no important points need to write it down here for MILO.

MAGGI:

MAGGI HOT MEALZ is doing good it seems,
and more flavors were released.

Not only that:

Seems like NESTLE also pushing the OATMEE.

MAGGI CUKUPRASA also doing good.

NESCAFE:

NESCAFE Latte Hazelnut?
Okay I should buy one to try~

For Confectionary segment:

Seems like KIT KAT Mini was the biggest product launch in year 2017,
come in 3 flavours - Caramel, Mocha and Cookies & Cream.

Except Caramel flavour,
I already tried the other two flavours,
and yeah.... really delicious,
but the problem is that.....  a bit expensive........

All KIT KAT chocolate products are manufactured at NESTLE factory in Chembong, Negeri Sembilan.

NESTUM segment:

Seems like the Cereal drink is receiving good responses,
I should buy one bottle and try too~

As for Ready-To-Drink segment:

Hmmm......
Interesting........

According to the financial reports of F&N and COCOLAND,
sales of the drinks were dropping.

But here,
NESTLE is saying that the business is one of its fastest growing categories,
driven by MILO and NESCAFE~~~

For ice cream:

So MATKOOL is the No.1 kids' brand in Malaysia.

According to what was written above,
the CERELAC, LACTOKID & NANKID are all doing good.


That's all for those things that I think is important.

After reading annual report of NESTLE,
my feeling was the same like after reading F&N annual report,
I feel that my confident has increased and want to buy more shares.

But wait..........
the shares price is around RM150..........
I need to take my time to think.............

Anyway,
from what I have seen,
except the three main products: MILO, MAGGI and NESCAFE,
NESTLE also aggressively pushing other products.

At the future, NESTLE might have more than three ace products~

But wait..........
the shares price is around RM150..........
I do need to take my time to think.............

Recently I visited supermarket,
and realized that there is new flavour of KIT KAT now,
red bean+green tea flavour.

So now............

To invest at company which every year also actively releasing new products?
Or.......
to invest at company which every time burn a lot of money just to change the cover of the current products??

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.

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Other links:
List of articles of year 2018
List of articles of year 2017
My investment return for year 2017
My self-introduction article

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