nestle

 
 

Malaysia to woo foreign investors even beyond US-China trade war

PETALING JAYA, Aug 22 — Malaysia will continue to be a business-friendly country and woo more foreign investors into the country even beyond the US-China trade war, Deputy International Trade and Industry Minister Ong Kian Ming said. He…


Genting Malaysia downplays Empire Resorts liquidity crunch

PETALING JAYA: Genting Malaysia Bhd (GenM) has given an assurance that the present liquidity challenges faced by loss-making Empire Resorts can be resolved following news that the latter may file for bankruptcy.

GenM has come under fire after it announced the acquisition of a 46% stake in Empire from Tan Sri Lim Kok Thay’s Kien Huat Realty Ltd (KH) for RM538.8 million.

“Empire stated that it believes that its current cash, cash equivalents, cash generated from operations and available funding pursuant to KH’s current commitments will provide sufficient liquidity to fund debt service requirements, Empire’s operations and the expected costs of developing the golf course adjacent to its casino, Resorts World Catskills (RWC), until the first quarter of 2020,” GenM said today in response to a query by Bursa Malaysia.

“Furthermore, based on our analysis from public filings, we believe that, with immediate improvements to Empire’s operations following an expeditious consummation of the proposed merger, Empire’s present liquidity challenges can be met,” it added.

GenM highlighted that Empire had identified multiple options to address its current liquidity challenges, including, seeking arrangements to provide additional liquidity, making reductions to its cost structure, restructuring of its and its subsidiaries existing debt terms and pursuing the joint non-binding proposal submitted by GenM and KH to acquire all outstanding shares of capital stock held by Empire stockholders unaffiliated with KH.

However, if these alternatives are unsuccessful, GenM said Empire had indicated that it may pursue a voluntary Chapter 11 bankruptcy proceeding in respect of its subsidiary that owns the Catskills casino operations.

“GenM strongly believes that the proposal is the best alternative available to Empire’s stockholders and that the proposal is also in the best interests of GenM’s shareholders.”

GenM said it has carefully evaluated the investment into Empire and has deemed it a worthwhile investment as RWC is one of the newest and highest quality gaming assets in the northeast US, with over US$900 million (RM3.77 billion) invested.

“RWC is also nestled in a scenic mountain range development that includes the third party US$200 million Kartrite Resort. The Kartrite Resort is one of the most modern and state of the art indoor water park developments in the US, with 324 brand-new all suite luxury rooms that offer a family attraction for all ages.”

Due to established management in New York, GenM said, the group is in a unique position to take advantage of synergies between its existing operations at Resorts World New York (RWNY) and the RWC.

“This will provide both RWNY and RWC with economies of scale resulting in a net cost reduction, thus improving earnings.”

GenM has been inovlved in the New York gaming market for almost a decade and currently operates RWNY.

GenM opined that the successful execution of the proposed merger would place the group in a position to more deeply access the New York market and provide both GenM and Empire the opportunity to compete more effectively in northeastern US’s competitive gaming landscape.

GenM shares have tumbled 15% since the acquisition was announced last week. Today, the stock was down 1.3% to RM3.07 on 26.61 million shares done.


Genting Malaysia downplays Empire Resorts liquidity crunch

PETALING JAYA: Genting Malaysia Bhd (GenM) has given an assurance that the present liquidity challenges faced by loss-making Empire Resorts can be resolved following news that the latter may file for bankruptcy.

GenM has come under fire after it announced the acquisition of a 46% stake in Empire from Tan Sri Lim Kok Thay’s Kien Huat Realty Ltd (KH) for RM538.8 million.

“Empire stated that it believes that its current cash, cash equivalents, cash generated from operations and available funding pursuant to KH’s current commitments will provide sufficient liquidity to fund debt service requirements, Empire’s operations and the expected costs of developing the golf course adjacent to its casino, Resorts World Catskills (RWC), until the first quarter of 2020,” GenM said today in response to a query by Bursa Malaysia.

“Furthermore, based on our analysis from public filings, we believe that, with immediate improvements to Empire’s operations following an expeditious consummation of the proposed merger, Empire’s present liquidity challenges can be met,” it added.

GenM highlighted that Empire had identified multiple options to address its current liquidity challenges, including, seeking arrangements to provide additional liquidity, making reductions to its cost structure, restructuring of its and its subsidiaries existing debt terms and pursuing the joint non-binding proposal submitted by GenM and KH to acquire all outstanding shares of capital stock held by Empire stockholders unaffiliated with KH.

However, if these alternatives are unsuccessful, GenM said Empire had indicated that it may pursue a voluntary Chapter 11 bankruptcy proceeding in respect of its subsidiary that owns the Catskills casino operations.

“GenM strongly believes that the proposal is the best alternative available to Empire’s stockholders and that the proposal is also in the best interests of GenM’s shareholders.”

GenM said it has carefully evaluated the investment into Empire and has deemed it a worthwhile investment as RWC is one of the newest and highest quality gaming assets in the northeast US, with over US$900 million (RM3.77 billion) invested.

“RWC is also nestled in a scenic mountain range development that includes the third party US$200 million Kartrite Resort. The Kartrite Resort is one of the most modern and state of the art indoor water park developments in the US, with 324 brand-new all suite luxury rooms that offer a family attraction for all ages.”

Due to established management in New York, GenM said, the group is in a unique position to take advantage of synergies between its existing operations at Resorts World New York (RWNY) and the RWC.

“This will provide both RWNY and RWC with economies of scale resulting in a net cost reduction, thus improving earnings.”

GenM has been inovlved in the New York gaming market for almost a decade and currently operates RWNY.

GenM opined that the successful execution of the proposed merger would place the group in a position to more deeply access the New York market and provide both GenM and Empire the opportunity to compete more effectively in northeastern US’s competitive gaming landscape.

GenM shares have tumbled 15% since the acquisition was announced last week. Today, the stock was down 1.3% to RM3.07 on 26.61 million shares done.


Bursa returns to red on heightened global uncertainty

KUALA LUMPUR, Aug 15 — Intensifying global uncertainties and slowdown in major economies dragged Bursa Malaysia into the red at the opening today.   At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) dropped…


Bursa Malaysia returns to red at the opening

KUALA LUMPUR: Intensifying global uncertainties and slowdown in major economies dragged Bursa Malaysia into the red at the opening today.

At 9.05am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 16.14 points to 1,584.17, below the psychological support level of 1,590 from yesterday’s close of 1,600.31.

The index was opened 15.40 points lower at 1,584.91.

Medium-sized capital saw the sharpest decline with a 1.8% drop followed by the technology sector with 1.74% and small-sized capitals 1.6%.

On the broader market, losers overwhelmed gainers 429 to 23, while 97 counters were unchanged, 1,384 untraded and 17 others suspended.

Turnover stood at 140.63 million units worth RM83.65 million.

Malacca Securities Sdn Bhd said following a stable session yesterday, Bursa was expected to come under selling pressure after overnight rout on global equities with bond yields remained inverted – heightening recession fears and dampening sentiments on equities.

“Even with the US delaying further tariffs on China-made goods, market conditions will remain guarded as the trade squabble shows no signs of easing and the issue could remain long-drawn,“ it said.

At the technical forefront, it said that the key index is now below the 1,600 support level, and has been revised to 1,590 and 1,580 levels, while the resistances are at the 1,610 and 1,620, respectively.

“The local bourse is unlikely to find much solace as the broad market sentiments are staying cautious, due in part to the ongoing threats to the global economic environment and the still unresolved trade spat between the US and China that is likely to keep sentiments in check for longer,“ it said.

Among the top losers was Nestle which shed 60 sen to RM146.00, Genting Plantation declined 33 sen to RM24.02, Public Bank shed 32 sen to 20.48, Kuala Lumpur Kepong lost 26 sen to RM23.36 and Hong Leong Financial was down 20 sen to RM17.06.

As for heavyweights, Maybank and CIMB lost three sen to RM8.56 and RM5.06 respectively, Tenaga Nasional reduced 12 sen to RM13.50, Petronas Chemical slid 17 sen to RM7.14, and IHH dropped two sen to RM5.64.

For the most active stocks, KNM reduced 1.5 sen to 36.5 sen, Ekovest weakened two sen to 80 sen, Berjaya Corp and Sapura Energy shed half-a-sen to 22.5 sen and 27 sen respectively.

The FBM Ace contracts 88.84 points to 4,553.02, the FBM 70 down 208.86 points to 13,970.35, the FBM Emas Index lost 129.04 points to 11,206.94, the FBM Emas Shariah Index depreciated 147.83 points to 11,693.99 and the FBMT 100 Index slid 124.87 points to 11,046.10.

Sector-wise, the Financial Services Index was 132.60 points lower at 15,547.69, the Plantation Index discounted 91.31 points to 6,630.69, and the Industrial Products and Services Index inched down 2.25 points to 148.90. – Bernama


Bursa Malaysia drops below 1,600 level at opening

KUALA LUMPUR, Aug 6 — Bursa Malaysia opened sharply lower as local equities continue to be gripped by the escalating trade war between the US and China. At 9.10am, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 18.37 points to 1,592.04,…


Bursa Malaysia stays broadly lower at mid-morning

KUALA LUMPUR, Aug 5 — Bursa Malaysia stayed broadly lower at mid-morning on selling activities across the board, dragged down by bearish market sentiment. At 11.05am, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 13.42 points…


Bursa Malaysia continues to weaken at mid-afternoon

KUALA LUMPUR, Aug 2 — Bursa Malaysia continued to weakened at mid-afternoon today on selling pressure in almost in all counters across the board, while tracking regional peers following renewed worries over…


Titijaya launches Seiring Residensi serviced apartments

PETALING JAYA: Titijaya Land Bhd has launched serviced apartments named Seiring Residensi in its Damaisuria township project located in Bukit Subang, Shah Alam.

The serviced apartments, which is Phase One of Damaisuria, comprises four towers with units sized from 668 sq ft to 972 sq ft, with up to four bedrooms.

The first tower (Tower A), which was released last Saturday, offers 370 units featuring modern and practical layouts, with spaces designed to cater to the urban vibrant lifestyles of Subang denizens.

“Thoughtful design and inventive ideas are behind every part of Seiring Residensi. It was designed for every home owner, from singles to families. With the convenience of all education, services, retail and entertainment facilities located nearby, the development ensures that all needs are covered, ensuring the best for the future generations,” said Titijaya executive director Charmaine Lim Puay Fung.

Damaisuria is a new integrated township being developed in four phases by Titijaya with a gross development value (GDV) of RM1.59 billion. Seiring Residensi has a GDV of RM677 million while Tower A of Seiring Residensi has a GDV of RM168 million.

Nestled in the border of Kota Damansara and Subang, Damaisuria is a freehold development offering exclusive yet affordable family living set amid greeneries and complemented by various facilities.

It is accessible via the NKVE, GCE and North-South Central Link, while the proposed DASH (Damansara-Shah Alam Elevated Expressway) will form a direct link to Kota Damansara which is 5.2km.


Nestle overhaul speeds up as it posts fastest sales growth in 3 years

ZURICH: Food giant Nestle posted its fastest organic sales growth in three years on Friday as the KitKat chocolate bar maker’s recovery under Chief Executive Mark Schneider gathered pace.

Makers of packaged foods have been struggling to adjust to consumers’ growing appetite for fresh foods deemed healthier and intense competition from small local startups offering goods ranging from breakfast cereals to coffee and chocolate.

Since taking over in 2017, Schneider, the first outsider to lead Nestle in a nearly a century, has pushed the company into new areas such as plant-based foods, revamped big brands like Nescafe instant coffee and axed under-performers like its U.S. confectionary operation.

Nestle’s organic sales, which strip out currency swings and acquisitions and disposals, accelerated to 3.9% in the three months to the end of June, the highest quarterly rate since the beginning of 2016.

For the half year, it matched analyst expectations for 3.6% growth, an improvement over 2.8% in the year-ago period, and is now on track to meet its target of mid single-digit organic growth by the end of 2020, Schneider told reporters.

“People see good momentum in the company both on growth and earnings and that is not something we would expect to stop in 2020, so the momentum should continue,” Schneider said.

“I think the results show very convincingly we are on a path to meeting those,” he said, referring to Nestle’s targets.

Net profit at the world’s largest food company fell 14.6% to 5.0 billion Swiss francs ($5.05 billion), as the year-ago period benefited from a $2.8 billion one-off gain linked to selling its U.S. confectionery business to Ferrero.

Nestle’s trading operating profit margin improved to a better-than-expected 17.1% as the company pressed ahead with its premiumisation strategy, selling more products with fatter margins and more resilient to economic downturns.

Nestle now gets around 23% of its sales from products such as its rose chocolate flavoured KitKats and flavoured San Pellegrino water, a figure Schneider expected to rise.

“Premium overall is doing very well for us, it tends to be very successful for the top line and the bottom line. That applies to all geographies … and all categories,” he said.

Nestle’s first-half sales rose 3.5% to 45.46 billion francs, short of forecasts of 45.7 billion francs, with the United States and Brazil, Nestle’s number 1 and number 4 markets, doing well.

China, its second biggest market, saw softer growth as categories like mainstream baby foods struggled compared with pricier options.

“We are a little more concerned there by the environment at large,” Chief Financial Officer Francois-Xavier Roger said.

French rival Danone on Thursday reported accelerated sales growth in the second quarter as its baby food products sales in China rebounded.

Nestle confirmed its guidance, saying it expects full-year organic sales growth around 3.5% and an underlying trading operating profit margin at or above 17.5%.

Analysts described the outlook as cautious, although Schneider said Nestle faced tougher comparisons in the second half of the year and higher commodity prices.

They also highlighted the improvement in margins and organic growth.

“What a change at Nestle within a short period of time,” said Bank Vontobel analyst Jean-Philippe Bertschy. “Under the leadership of Mark Schneider, Nestle is being propelled to a higher level of growth and returns.

“This is coming at an even quicker pace that anticipated.”