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Nestl é Module 10: A More Detailed Analysis of the Financial Reports. Dan Finan. Processed & Packaged Goods Industry. Overview of Nestle. Six reportable segments: Zone Europe Zone Americas Zone Asia, Oceania and Africa Nestle Waters Nestle Nutrition Other Food and Beverages.
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NestléModule 10: A More Detailed Analysis of the Financial Reports Dan Finan
Overview of Nestle • Six reportable segments: • Zone Europe • Zone Americas • Zone Asia, Oceania and Africa • Nestle Waters • Nestle Nutrition • Other Food and Beverages
Overview of Nestle • Products are categorized under: • Powdered and Liquid Beverages • Milk Products and Ice cream • Prepared Dishes and Cooking Aids • Confectionery • Pet Care • Water • Pharmaceuticals • Nutrition
New Valuations Previous Valuation: $192,818
My Recommendation • At first, this valuation seems quite low…but I think Nestle is maturing and has struggled to expand operations to take advantage of new markets and opportunities. • Paul Bulcke, Nestlé CEO: “The macro-environment in 2013 was one of soft growth, minimal in the developed world and below recent levels in the emerging markets. Our response was to increase brand support, accelerate innovation, and to ensure our pricing was sensitive to consumer needs.
My Recommendation • 10-K is not very transparent…admittedly, being able to identify information that points out one-time charges and temporary restructuring costs would undoubtedly push this valuation up toward the current market price. • No information re: leases, ESOP
My Recommendation Based on my current valuation, and the information I know… SELL