According to the financial report, Nestle has a RM 3.3m one-time loss (Impairment of assets) in 3Q19

Compared with the same period of last year, Nestle's receivables fell sharply to RM 1.1m (previous year: RM 6.1m). This represents a lot of progress in the company's receivable management, a good phenomenon.

Main Reason:
Compared with the same period of last year, Nestle recorded RM 192m pre-tax profit (up 2.6%) and after-tax profit RM 149m (up 8.2%)

Although raw material prices have risen and exchange rates have depreciated, earnings are still growing mainly due to efficient cost control.

In the same period last year, the government abolished GST and led to a particularly high turnover.

Nestle also continue introduced new products such as the Starbuck at home series, Nescafe gold, Milo Protein Up, Nestle RTD, Nestle Crunch Wafer Nuts and Pika Pika ice cream.

Compared with the previous quarter, Nestle recorded 1.4b turnover (up 4.9%) in Q3 but the pre-tax profit fell to RM192m, mainly due to commercial expenses.

In addition, Q2 also has a one-time profit of about RM19.7m related to the withdrawal of PJ factory.

Future Prospect:
Nestle is already a very stable company in Malaysia, and management expects Q4 to achieve stable results.

Although the global economy is uncertainty, Nestle's fundamentals are still very strong and stable. The company will be focusing to continue develop the company-based consumers.

In addition, the company will also continue to improve efficiency to save more cost, and focusing on investing into their own brands and protecting the company's profitability.

Dividend:
Nestle pays a dividend of RM 0.70. Ex-Date 28 Nov 2019, payment date 19 Dec 2019

Louis Yap

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