KUALA LUMPUR (Apr 23): The financial year ending Dec 31, 2015 (FY15) will be a year of stabilisation for Nestle (M) Bhd, according to its managing director Alois Hofbauer.

“FY15 will be a year of stabilisation for us, so in terms of capital expenditure (capex), you will not see the same capex figures invested in FY15 as was in FY14,” he said in a media conference after Nestle’s annual general meeting today.

According to Nestle executive director responsible for finance and control Martin Peter Krugel, the group has allocated a capex ranging from RM150 million to RM180 million for FY15.

“We have spent more than RM350 million in capex for FY14, in FY15 we will be concentrating on the completion of our earlier projects and we will not be investing in any new plants.

“In line with this, our Sri Muda factory in Shah Alam recently came on-stream and is set to be fully operational by August 2015,” said Hofbauer.

He added that the group has spent about RM200 million in capex for its Sri Muda plant.

Nestle (fundamental: 1.75; valuation: 1.5) shares closed unchanged at RM74 at noon with a market capitalisation of RM17.4 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)