Nestle plc stock price heads higher despite mixed-up economy

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Nestle plc. Products

From Benjamin A Ameh, Lagos

Stock of share on any floor of Stock Exchange is not the same; therefore, the price cannot be same too.

The leading Nutrition, Health and Wellness Company in the Food, Beverages Industry in Nigeria estimated its profit after tax PAT to be N5786billion for the fourth quarters of 2013 in contrast to N16,889.0 million for profit after tax during the financial year ending December 31, 2012 with a turnover of N25158 billion in2013

The general overview analysis of the earnings showed the marginal growth over the preceding year 2012. Therefore nestle Nigeria plc has shown its strength in both market pricing and earnings among the listed companies on the floor of the NSE.

Nestle has a strong quarter ahead of it, and plenty of catalysts to drive it stock price higher, you would never know but if you are a fellow of the said stock on the floor of the NSE.

The stock has being a consistent in leading price movement. The history of price movement on the floor of the NSE showed that the first stock to cross N1.00…N100.00…., Now selling at N1060.00 per share and still as investor’s delighted stock.

While the Nigeria Breweries, Mobil. Dangote cement generally beat stock market and experts’ expectations; investors still stocked as much as 4% of their investment fund in the Nestle stock price in daily trading than others.

Other stocks that can however push the market price like Nestle plc are Okomu oil Palm and Presco stocks price up as much as 1.75% before reversing. Nestlé’s Q4 earnings will surprise the market expectations which may be good but not spectacular. But when it comes to Nestle, anything less than spectacular is usually a disappointment.

Also, gross margins fell from 40% last year to 37%, stirring concern among analysts that Nestle is feeling pricing pressure from competitors selling cheaper. Sales of Nestlé’s products were a mixed bag; look at Maggi cube, for instant with 33.8 million versus 31 million expected, Milo, 14.1 million versus 14.5 million expected, and the Life water bottle, 4.6 million versus 160 million expectations. Turnover of N112,972.0 million for the financial year ending, December31, 2012. The directors of the company has submitted a forecast of N16,889.0 million for profit after tax during the financial year ending December 31, 2012. Earnings forecast (q2: April – June, 2013) – turnover N31.750b profit before tax N5.970b taxation (N931m) profit after tax N5.039b.

Nestlé’s cash pile stayed about the same at N146.8 billion, as the company has been paying more of its profits out in dividends and using it for stock buybacks. Why the Nestle Stock Price Will Go Up Why the stock been bullish? “I think it is going to take off. I think it’s already made a great rest.”  “It’s up about 16% from where we got in. I think it’s got a lot more to go.”

Many experts and Nestle followers likes what Nestle has been doing with its dividend paid out policy to the shareholders showed the corporate activities over ten years [2012 to 2013] created wealth for both the stakeholders and shareholders through cash dividend value N74 858 861 000 [seventy-four billion eight hundred and fifty-eight million eight hundred and sixty-one thousand] has be paid and bonus issued other several reasons why the company’s days as a growth company are not over, yet.

According to mr Celestine ukpong and a leader, Association of shareholders of Nigeria, mr Boniface okezie, both attributed the financial performance of the company to good management strategy, competitive price of good and quality of products in the market.


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