Monik Kotecha

“As the world’s largest food + beverage company, Nestlé, is now focusing on nutritional therapy, a diversification effort that taps into the fast-growing, high-margin healthcare product market,” said Mr Monik Kotecha, CIO, Insync Fund Managers.

“Nestlé Management’s constant long-term focus on innovation and identifying/investing into the next megatrend has enabled it to deliver consistent revenue growth over time, with the current growth rate in excess of global GDP, which is remarkable for a company of its size.

“Nestle is a good example of a compounder that we strive to own in the portfolio. The demand for the company’s products has been consistent through the cycle which has contributed to steady growth in revenues through the economic cycle.

“As we continue to operate in uncertain and volatile times, Nestlé’s strong brands, high-quality cash flows, good management, efficiencies, stock repurchases and the growing dividend suits our portfolio very well.

“I wish there were more Nestlé stocks to buy that were building real innovation on top of their existing businesses,” said Mr Kotecha.

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