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Food/Beverages & Tobacco stocks 7UP, Cadbury, Flour Mills, Nestle, Nigeria Bottling Company (NBC), Union Dicon Salt etc

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  #161 (permalink)  
Old 24th February 2011, 09:02 AM
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Default Re: Nestle

Quote:
Originally Posted by knightofdelta View Post
Payout ratio dropped from 95 - 105% to about 66%... that tells you something.
Quote:
Originally Posted by nosa2 View Post
did it ever really have strong fundamentals? 2% dividend yield is comparable to other foreign companies thus is poor considering country risk.
Guys, i have another perspective to this Nestle gist. during the last financial year, Nestle S.A (the parent company) gave a loan to Nestle Nigeria to finance the on-going expansion plans. I don't know why this has not been mentioned so far, or did the house miss out on it.

IMO, they have ti start paying back the loan and this explains the drop in payout ratio/Dividend yield.
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  #162 (permalink)  
Old 24th February 2011, 10:07 AM
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Default Re: Nestle

Quote:
Originally Posted by horlads View Post
Guys, i have another perspective to this Nestle gist. during the last financial year, Nestle S.A (the parent company) gave a loan to Nestle Nigeria to finance the on-going expansion plans. I don't know why this has not been mentioned so far, or did the house miss out on it.

IMO, they have ti start paying back the loan and this explains the drop in payout ratio/Dividend yield.
In spite of all this jist, I'm offering N478 for anyone with units to sell this week.
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  #163 (permalink)  
Old 24th February 2011, 10:14 AM
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Default Re: Nestle

That's quite a fair, generous offer! Sure the price won't drop drastically before closure date? I don't think it's heading towards N500. See Chevron? You know why sha.
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  #164 (permalink)  
Old 24th February 2011, 10:40 AM
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Default Re: Nestle

Quote:
Originally Posted by horlads View Post
Guys, i have another perspective to this Nestle gist. during the last financial year, Nestle S.A (the parent company) gave a loan to Nestle Nigeria to finance the on-going expansion plans. I don't know why this has not been mentioned so far, or did the house miss out on it.

IMO, they have ti start paying back the loan and this explains the drop in payout ratio/Dividend yield.
The loan was collected in 2009 and Nestle will start servicing it from December 2011...

Interest payments are usually deducted before tax and principal repayment is deducted from current cashflows, so this should have no bearing on the dividend payout ratio.

My interpretation is that Nestle is building up equity for further expansion.
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  #165 (permalink)  
Old 24th February 2011, 11:40 AM
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Default Re: Nestle

Nestle Nigeria Plc FY'10 Earnings Analysis - Proshare
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  #166 (permalink)  
Old 25th February 2011, 12:27 PM
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Default Re: Nestle

Quote:
Originally Posted by knightofdelta View Post
Seems like Nestle is about to lose steam. It has a bid price of N461 which is just 1.74% above yesterday's close...
Confirmed. The bid/offers today was practically neutral. The bulls have deserted this one...bonus or no bonus.
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  #167 (permalink)  
Old 25th February 2011, 02:17 PM
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Default Re: Nestle

Quote:
Originally Posted by pumping View Post
Confirmed. The bid/offers today was practically neutral. The bulls have deserted this one...bonus or no bonus.
Na you JINX Nestle
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  #168 (permalink)  
Old 25th February 2011, 05:01 PM
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Default Re: Nestle

Quote:
Originally Posted by wanaj0 View Post
Na you JINX Nestle
I do feel guilty about this one...
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  #169 (permalink)  
Old 7th March 2011, 05:53 PM
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Default Re: Nestle

Is there a possibility that this stock will get down to 300 naira this year?
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  #170 (permalink)  
Old 7th March 2011, 06:27 PM
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Default Re: Nestle

Quote:
Originally Posted by Stock key View Post
Is there a possibility that this stock will get down to 300 naira this year?
Bros, nothing is impossible. All it takes is some bad news concerning the stock or a persistent general bear market. My advice: don't wait for that time. Take your money go pursue other opportunities in the market. Some stocks are presently very low in Vitamin K.
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  #171 (permalink)  
Old 7th March 2011, 08:29 PM
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Default Re: Nestle

Nestle Nigeria Plc forecasts N22.1 billion Turnover for Q1 2011 - Proshare
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  #172 (permalink)  
Old 18th April 2011, 06:33 PM
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Default Re: Nestle

Nestle Nigeria Plc re-scheduled Corporate Action date




18 April 2011
Corporate Actions
Proposed Dividend N10.60kobo
Proposed Bonus 1 for 5
Payment Date 29th April 2011
Closure Date 18th 22nd April 2011
AGM Date 28th April 2011
AGM Venue Muson Center Onikan Lagos @ 11am

Notes
The rescheduled dates are due to the readjustment in the election dates
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  #173 (permalink)  
Old 29th April 2011, 08:57 AM
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Default Re: Nestle

Nestle records N82.7b turnover, opens N3.6b tri-generation plant
http://www.compassnewspaper.com/inde...ews&Itemid=607
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  #174 (permalink)  
Old 1st May 2011, 07:35 AM
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Default Re: Nestle

Quote:
Originally Posted by pumping View Post
In spite of all this jist, I'm offering N478 for anyone with units to sell this week.
Quote:
Originally Posted by saheewale View Post
Nestle records N82.7b turnover, opens N3.6b tri-generation plant
http://www.compassnewspaper.com/inde...ews&Itemid=607
Nestle Turnover Hits N82.7bn, Articles | THISDAY LIVE
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  #175 (permalink)  
Old 4th May 2011, 06:48 AM
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Default Re: Nestle

Nestle Nigeria Plc dips PAT by 19.8% in Q1 2011 result. - Proshare
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  #176 (permalink)  
Old 6th July 2011, 05:22 AM
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Default Re: Nestle

Nestle to invest $1.4bn in Africa to maintain ?strong? growth
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  #177 (permalink)  
Old 26th July 2011, 02:01 PM
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Default Re: Nestle

Kindly be informed that Nestle Nigeria Plc have just released their unaudited results for the period ended June 30, 2011.

Turnover 11 N44.913b 10 N37.761b
Profit Before Tax 11 N9.035b 10 N9.173b
Tax 11 N(2.777b) 10 N(3.137b)
Profit After Taxation 11 N6.257b 10 N6.036b
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  #178 (permalink)  
Old 27th July 2011, 08:40 AM
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Default Re: Nestle

NESTLE NIGERIA PLC 26 July 2011
Unaudited Q2 June 2011
2011 2010
Turnover N44.913b N37.761b
Cost Of Sales (N25.582b) (N20.081b)
Profit Before Tax N9.035b N9.173b
Taxation (N2.777b) (N3.137b)
Profit After Tax N6.257b N6.036b
Balance Sheet Information 30-06-11 31-12-10
Fixed Assets N45.976b N40.241b
Stock N9.440b N8.494b
Trade Debtors N2.835b N4.970b
Cash and Bank Balances N1.235b N3.092b
Other Debit Balances N3.270b N3.548b
Trade Creditors N1.337b N4.085b
Short Term Borrowings N9.646b N3.398b
Other Credit Balances N38.940b N37.997b
Net Assets N12.833b N14.865b
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  #179 (permalink)  
Old 30th September 2011, 04:13 PM
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Default Re: Nestle

My Ogas, I hail O. Please i need the STATEMENT OF CASH FLOW for 2010 for both NESTLE and OANDO. I have already seen their balance sheets, but i need their cash flow statements. Am working on improving my ability to analyze financial statements.

I also have the following questions to ask my Ogas:

1. Can a company with a negative FREE CASH (OCF - CFI) pay dividends? If so, will they borrow the money to do so? If yes, is it a good or bad sign for such a company? I mean, should it be looked at as a good use of debt?

2. In using Price/Cashflow (as against Price/Earning ratio), when should a descrepancy be viewed as significant?

3. I know how dividend payout ratio(DPR) is calculated, but can FREE CASH/CASH FLOW in the current year be used to fore-tell if a company can meet its previous year DPR? I have not seen this anywhere but am just thinking it might be possible. Am just playing with numbers here, to know if a company will likely pay dividends or not; by just considering the cash flow statement.
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  #180 (permalink)  
Old 30th September 2011, 10:22 PM
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Default Re: Nestle

Quote:
Originally Posted by dr.abrahamb View Post
My Ogas, I hail O. Please i need the STATEMENT OF CASH FLOW for 2010 for both NESTLE and OANDO. I have already seen their balance sheets, but i need their cash flow statements. Am working on improving my ability to analyze financial statements.

I also have the following questions to ask my Ogas:

1. Can a company with a negative FREE CASH (OCF - CFI) pay dividends? If so, will they borrow the money to do so? If yes, is it a good or bad sign for such a company? I mean, should it be looked at as a good use of debt?

2. In using Price/Cashflow (as against Price/Earning ratio), when should a descrepancy be viewed as significant?

3. I know how dividend payout ratio(DPR) is calculated, but can FREE CASH/CASH FLOW in the current year be used to fore-tell if a company can meet its previous year DPR? I have not seen this anywhere but am just thinking it might be possible. Am just playing with numbers here, to know if a company will likely pay dividends or not; by just considering the cash flow statement.
All these your questions are high level oh. You just dey do analysis, we no dey see wetin you dey do oh. It is not fair at all. Abeg, just let us know whatever you come up with in the the spirit of give and take. You cannot just take without giving.

To answer your plenty questions.

1. From your definition of free cash flow, no. A company with a negative free cash flow should not pay dividends because the company did not generate cash to pay shareholders after sorting out operations and required investments. However, according to IFRS, which is about to become the new standard in Nigeria, the company is free to add dividend payment to either operating cash flow or cash flow from financing. That means if a company decides to include dividend payments into cash flow from operations, it may end up running into negative free cash flow. So a company that decides to pay dividends despite running a negative free cash flow regardless of where the dividend payment is paid will end up paying it by either issuing new shares or borrowing, which of course, is a very daft move.

2. Don't use PE to gauge price to cash flow. It is better to look at the difference between the EBITDA against the cash flow from operations. There are so many things that happen after EBITDA, such as depreciation, which can come in very many different ways. While one company may depreciate cars over 4 years another one may decide to depreciate over 5 years, etc. If cash flow from operations is less than 70% of EBITDA, then you need to be worried about the credit standards of the company. That is not an absolute rule. You need to take a look at the industry standards to arrive at your conclusions.

3. Just as stated in point 1, free cash flow can be used to determine if a company will be able to maintain its payout ratio...
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