Consumers Product
Group Members
Aisha Dadeh 0309107
Shavini Ruberu 0308894
Merry Trisnawati 0309186
Umar Hariz 1101jp89860
Galbraith Alvin Tero 0807jp86993
•Dutch Lady Milk Industries Bhd.
•Nestle Group Malaysia Sdn. Bhd.
Companies Background & Prospect of
Investment
• Dairy based products
• Both companies begin with sweeten condensed milk production
• Distribution in Malaysia: Nestle in 1912 and Dutch Lady 1954
• Expanding production: Variety of Dairy based products and others
• Price on dairy raw materials increase, however both companies are able
to maintain production and gain revenue
• Top ranking brands in Malaysians' preference in this industry
5. Investor Ratio (Shareholder Ratio)
Return on Equity Divident Per Share
2013 2012 2013 2012
Dutch Lady
Profit after tax & Dutch Total dividend paid to (sen)
260 260
73.5% 57%
Preference dividend Lady ordinary shareholders
Number of
issued ordinary share
Shareholders’ fund Nestle (sen) 235 210
Nestle 69% 67%
•Shows the return earned by the fund •Nestle issued a dividend per share of 210 sen
shareholders have invested in the business. in 2012 and increased to 235 sen in 2013
•At the year end of 2012, Dutch Lady •DPS issued to Dutch Lady shareholders remain
earned 57 sen on each Ringgit of the same in both years
ordinary share capital
•Shareholders usually concerned that dividends
•Shareholders in Dutch Lady faced higher paid per issued ordinary share does not
growth in return on equity during one decrease.
year (2013), thus receive a higher return than
that of Nestle. •Dutch Lady’s DPS remains constant in both years
but considerably higher than Nestle.
5. Investor Ratio (Shareholder Ratio)
Earnings Per Share (EPS) Price Earning Ratio
2013 2012 2013 2012
Dutch
Profit after tax & 216 193 Market priceEarning Dutch
Lady(sen) 21.8 24.1
Preference dividant
per Share Lady
Number of issued
ordinary share Nestle 28.4 29.2
Nestle (sen) 239.5 215.5
*Market price: Nestle RM 62.84 (2012) and RM 68.00 (2013), Dutch Lady RM 46.44 (2012) and RM 47.14 (2013)
•Indicator of a company’s profitability •Measures the amount that investors are
willing to pay for each Ringgit of a company’s
•Represent company’s profit earned on behalf earnings.
of each share
•Dutch Lady’s investors were paying RM 24.10
•Nestle’s earning per share is higher in both for each RM1 of earning at year-end 2012
years, compared with Dutch Lady’s
•Higher value in P/E ratio of Nestle (in both
•Both companies have similar growth rate in years) shows that investors are more
EPS. confident of the expected performance in this
company comparing to Dutch Lady.
5. Investor Ratio (Shareholder Ratio)
Divident Yield Ratio Market/Book Ratio
2013 2012 2013 2012
Dutch
Dividend per 5.5% 5.6% Market Dutch Lady 16.30 13.70
Lady
share priceBook
Market price* Value*
Nestle 3.5% 3.3% Nestle 19.40 19.60
*(Book Value = shareholder’s Fund / Number of issued ordinary share)
•Measures how much a company pays out •Dutch Lady investors were paying RM 13.70 for
dividend relative to market price of share. each RM 1.00 of book value of the company at
year-end 2012.
•Dutch Lady experience a slight decrease in
dividend yield, whereas there is an increase •Stocks a company that are expected to perform
to Nestle's well, tend to sell at higher M/B ratio.
•Dutch Lady still give out a considerably •Increase shows that investors have positive
higher yield to investors expectation on prospect and performance.
•Nestle has a very slight decrease in their M/B
ratio, it is still considerably higher than Dutch lady
