Latest news with #NESTLE
Scottish Sun
3 days ago
- Business
- Scottish Sun
Nestle to launch THREE new chocolate bars this month including two KitKat flavours
Plus, find out how to save money on chocolate CHOCO LOT Nestle to launch THREE new chocolate bars this month including two KitKat flavours Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) NESTLE has just dropped three new chocolate bars and it includes a twist on a new a real classic. The three new bars - KitKat Chunky Funky, KitKat Chunky Salted Caramel and KitKat Blue Riband Vanilla - will be available in shops from this week. Sign up for Scottish Sun newsletter Sign up 1 Nestle has launched three new chocolate bars The first bar - the KitKat Chunky Funky - is a crispy cocoa wafer and smothered in a marbled mix of creamy milk and white chocolate. While the KitKat Chunky Duo Salted Caramel is just like a normal KitKat Chunky but with salted caramel in its milk chocolate. And there's a new Blue Riband vanilla flavour launching too. It has 83 calories, which is less than the normal milk chocolate version which has 92 calories. KitKat's assistant brand boss, Rida Ahmed, reckons they'll be a hit with fans. She said: 'KitKat Chunky has a fresh look while keeping the delicious crispy wafer and chocolate that our fans adore. "It's such a fun product, and we can't wait to see how shoppers react!' We've asked Nestle for their recommended retail prices and the calories and we'll update this story asap. We've outdone ourselves with this one' say Cadbury Ireland as they reveal new limited edition bar 'coming soon The triple launch couldn't have come at a better time, with Nestlé fans still reeling from the shock axe of Clusters, a breakfast staple loved by many. It comes hot on the heels of the disappearance of Cheerios Vanilla O's, also binned by the brand last summer. Why are products axed or recipes changed? ANALYSIS by chief consumer reporter James Flanders. Food and drinks makers have been known to tweak their recipes or axe items altogether. They often say that this is down to the changing tastes of customers. There are several reasons why this could be done. For example, government regulation, like the "sugar tax," forces firms to change their recipes. Some manufacturers might choose to tweak ingredients to cut costs. They may opt for a cheaper alternative, especially when costs are rising to keep prices stable. For example, Tango Cherry disappeared from shelves in 2018. It has recently returned after six years away but as a sugar-free version. Fanta removed sweetener from its sugar-free alternative earlier this year. Suntory tweaked the flavour of its flagship Lucozade Original and Orange energy drinks. While the amount of sugar in every bottle remains unchanged, the supplier swapped out the sweetener aspartame for sucralose. New treats hitting the shelves Meanwhile, over in B&M, shoppers are going wild for Cadbury's new Dairy Milk Caramel Mudcake bar, with stock already flying off the shelves. The drop follows a string of Cadbury summer launches, from Iced Latte Dairy Milk with cool-changing packaging, to the nostalgic return of Dairy Milk Balls, likened to '90s Cadbury Tasters. While Digestives has launched a new pink version which tastes of raspberry and cream. And there's also a new mango and passion fruit Jammie Dodger. We rounded up all the treats hitting shelves soon - but would you try them?
Yahoo
20-05-2025
- Business
- Yahoo
Nestlé (Malaysia) Berhad's (KLSE:NESTLE) Intrinsic Value Is Potentially 26% Below Its Share Price
The projected fair value for Nestlé (Malaysia) Berhad is RM59.85 based on 2 Stage Free Cash Flow to Equity Current share price of RM80.80 suggests Nestlé (Malaysia) Berhad is potentially 35% overvalued The RM84.47 analyst price target for NESTLE is 41% more than our estimate of fair value In this article we are going to estimate the intrinsic value of Nestlé (Malaysia) Berhad (KLSE:NESTLE) by projecting its future cash flows and then discounting them to today's value. Our analysis will employ the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple! Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM580.9m RM666.4m RM730.1m RM724.0m RM767.0m RM797.3m RM827.9m RM859.1m RM891.1m RM923.9m Growth Rate Estimate Source Analyst x5 Analyst x5 Analyst x4 Analyst x1 Analyst x1 Est @ 3.95% Est @ 3.84% Est @ 3.77% Est @ 3.72% Est @ 3.68% Present Value (MYR, Millions) Discounted @ 8.3% RM536 RM568 RM574 RM525 RM514 RM493 RM472 RM452 RM433 RM415 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM5.0b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 8.3%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM924m× (1 + 3.6%) ÷ (8.3%– 3.6%) = RM20b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM20b÷ ( 1 + 8.3%)10= RM9.1b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is RM14b. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of RM80.8, the company appears potentially overvalued at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Nestlé (Malaysia) Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.3%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Nestlé (Malaysia) Berhad Strength Debt is well covered by earnings and cashflows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Food market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow faster than the Malaysian market. Threat Dividends are not covered by earnings. Annual revenue is forecast to grow slower than the Malaysian market. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. What is the reason for the share price exceeding the intrinsic value? For Nestlé (Malaysia) Berhad, there are three further factors you should consider: Risks: Every company has them, and we've spotted 3 warning signs for Nestlé (Malaysia) Berhad you should know about. Future Earnings: How does NESTLE's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the KLSE every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
11-04-2025
- Business
- Yahoo
Do These 3 Checks Before Buying Nestlé (Malaysia) Berhad (KLSE:NESTLE) For Its Upcoming Dividend
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Nestlé (Malaysia) Berhad (KLSE:NESTLE) is about to trade ex-dividend in the next 4 days. The ex-dividend date is two business days before a company's record date in most cases, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade can take two business days or more to settle. Therefore, if you purchase Nestlé (Malaysia) Berhad's shares on or after the 16th of April, you won't be eligible to receive the dividend, when it is paid on the 15th of May. The company's upcoming dividend is RM00.74 a share, following on from the last 12 months, when the company distributed a total of RM1.79 per share to shareholders. Looking at the last 12 months of distributions, Nestlé (Malaysia) Berhad has a trailing yield of approximately 2.3% on its current stock price of RM079.12. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Nestlé (Malaysia) Berhad has been able to grow its dividends, or if the dividend might be cut. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Nestlé (Malaysia) Berhad paid out 101% of its earnings, which is more than we're comfortable with, unless there are mitigating circumstances. That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. Over the past year it paid out 197% of its free cash flow as dividends, which is uncomfortably high. It's hard to consistently pay out more cash than you generate without either borrowing or using company cash, so we'd wonder how the company justifies this payout level. As Nestlé (Malaysia) Berhad's dividend was not well covered by either earnings or cash flow, we would be concerned that this dividend could be at risk over the long term. See our latest analysis for Nestlé (Malaysia) Berhad Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with falling earnings are riskier for dividend shareholders. If earnings fall far enough, the company could be forced to cut its dividend. Readers will understand then, why we're concerned to see Nestlé (Malaysia) Berhad's earnings per share have dropped 9.2% a year over the past five years. When earnings per share fall, the maximum amount of dividends that can be paid also falls. The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Nestlé (Malaysia) Berhad's dividend payments per share have declined at 2.7% per year on average over the past 10 years, which is uninspiring. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it. Is Nestlé (Malaysia) Berhad an attractive dividend stock, or better left on the shelf? Not only are earnings per share declining, but Nestlé (Malaysia) Berhad is paying out an uncomfortably high percentage of both its earnings and cashflow to shareholders as dividends. This is a starkly negative combination that often suggests a dividend cut could be in the company's near future. It's not an attractive combination from a dividend perspective, and we're inclined to pass on this one for the time being. With that in mind though, if the poor dividend characteristics of Nestlé (Malaysia) Berhad don't faze you, it's worth being mindful of the risks involved with this business. In terms of investment risks, we've identified 1 warning sign with Nestlé (Malaysia) Berhad and understanding them should be part of your investment process. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
04-03-2025
- Business
- Yahoo
Nestlé (Malaysia) Berhad's (KLSE:NESTLE) Dividend Will Be MYR0.74
The board of Nestlé (Malaysia) Berhad (KLSE:NESTLE) has announced that it will pay a dividend of MYR0.74 per share on the 15th of May. Based on this payment, the dividend yield will be 2.3%, which is lower than the average for the industry. View our latest analysis for Nestlé (Malaysia) Berhad It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Prior to this announcement, the company was paying out 101% of what it was earning. Without profits and cash flows increasing, it would be difficult for the company to continue paying the dividend at this level. Looking forward, earnings per share is forecast to rise by 38.1% over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 73%, which would make us comfortable with the sustainability of the dividend, despite the levels currently being quite high. The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from MYR2.35 total annually to MYR1.79. Doing the maths, this is a decline of about 2.7% per year. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges. Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. In the last five years, Nestlé (Malaysia) Berhad's earnings per share has shrunk at approximately 9.2% per annum. If the company is making less over time, it naturally follows that it will also have to pay out less in dividends. Earnings are predicted to grow over the next year, but we would remain cautious until a track record of earnings growth is established. Overall, the dividend looks like it may have been a bit high, which explains why it has now been cut. The company's earnings aren't high enough to be making such big distributions, and it isn't backed up by strong growth or consistency either. Considering all of these factors, we wouldn't rely on this dividend if we wanted to live on the income. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Just as an example, we've come across 2 warning signs for Nestlé (Malaysia) Berhad you should be aware of, and 1 of them is a bit concerning. Is Nestlé (Malaysia) Berhad not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
