Industry

Maggi ban stalks Nestle India Q3, net declines 60% to Rs. 124 crores

Chennai, 03/06/2015: Packets of Maggi 2-Minute Noodles, manufactured by Nestle India Ltd., at a general store in Chennai. Nestle, one of the biggest processed food makers, slid to the lowest in a month after a complaint was filed in a local court over lead levels in its Maggi instant noodles. Photographer: Jothi Ramalingam

Chennai, 03/06/2015: Packets of Maggi 2-Minute Noodles, manufactured by Nestle India Ltd., at a general store in Chennai. Nestle, one of the biggest processed food makers, slid to the lowest in a month after a complaint was filed in a local court over lead levels in its Maggi instant noodles. Photographer: Jothi Ramalingam   | Photo Credit: B_Jothi Ramalingam

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Due to the ban on Maggi, Nestle India had reported a standalone loss of Rs 64.40 crore in the second quarter for the first time in the last 15 years.

Reeling under the ban on Maggi instant noodles, Nestle India on Thursday reported a 60.1 per cent decline in its standalone net profit at Rs 124.20 crore for the third quarter ended September 2015.

The company, which ton Thursday appointed M.D. Suresh Narayanan its chairman to perform the dual role, had posted 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.

“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,” the company said.

The company follows January-December financial year.

Due to the ban on Maggi, Nestle India had reported a standalone loss of Rs 64.40 crore in the second quarter for the first time in the last 15 years.

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

On the results, Nestle India Chairman and MD Suresh Narayanan said 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.

“The results received from these laboratories show that 100 per cent samples tested are clear, with lead well below the permissible limits,” said Narayanan, who assumed the charge as the chairman of the company after retirement of A H Waszyk on October 1, 2015.

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

In June, FSSAI had banned Maggi noodles, saying it was “unsafe and hazardous” for consumption after finding lead levels beyond permissible limits. The company had withdrawn the instant noodles from the market.

Nestle India, which took a hit of Rs 450 crore, including destroying over 30,000 tonnes of the instant noodles since June when it was banned, had stated that it would continue with the existing formula of the product and not change the ingredients.

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Printable version | Jan 24, 2020 8:52:50 AM | https://www.thehindu.com/business/Industry/maggi-ban-stalks-nestle-india-q3-net-declines-60-to-rs-124-crores/article7819167.ece

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