Nestle India Profits Hit By Maggi Ban, Fall 60 Percent

Nestle India’s profits have fallen by 60 percent to Rs 124.20 crore as a result of the ban on Maggi in the country

Nestle India’s profits have been hit by the ban on Maggi. (Photo: PTI)

The ban on Maggi has not been kind to Nestle India’s profits, to say the least. The company reported a 60.1 percent decline in it’s standalone net profit at Rs 124.20 crore in the third quarter, which ended in September 2015.

The company had posted a standalone net profit of Rs 311.29 crore in the same period last fiscal.

During the period under review, net sales declined 32.12 per cent to Rs 1,736.20 crore as against Rs 2,557.80 crore a year ago, Nestle India said in a statement.

<p>Export sales decreased 6.4 per cent, which are impacted by the Maggi noodles issue and lower sales to Nepal due to the blockade of the border in the last week of September 2015.</p>

<p><b>Nestle India</b></p>

Nestle India said it was “faced with an unusual situation and continued to deal with it during the quarter as well”.

Nestle India Chairman and MD Suresh Narayanan said that during the quarter, the Bombay High Court set aside the ban and ordered that the earlier batches be tested at three accredited laboratories specified by them.

<p>The results received from these laboratories show that 100 percent of the samples tested are clear, with lead well below the permissible limits.</p>

<p><b>Suresh Narayanan, Chairman and MD, Nestle India</b></p>

Narayanan assumed the charge as chairman of the company after the retirement of A H Waszyk on 1 October, 2015.

Narayanan clarified that Nestle India has begun manufacturing Maggi and is keen to re-introduce it at the earliest after clearance of the samples.