The Maggi Noodles ban continued to adversely impact Nestle India’s profit for the second sequential quarter. Though the company has swung back to profit during the quarter ended September 30, after positing a loss in the April-June quarter, it was still lower by 60.1 per cent at ₹124.2 crore against the corresponding quarter last year.

The company follows the January-December financial calendar. The company posted an exceptional item of ₹24.5 crore, which relates to estimated loss on account of Maggi Noodles stocks withdrawn, including incidental costs and other related costs. “In addition to loss of sales from business disruption, net sales worth ₹15.32 crore have been reversed during the quarter in relation to Maggi Noodles stock being withdrawn from trade partners and the market,” the company added.

Net sales decreased by 32.1 per cent to ₹1,736.2 crore during the quarter largely due to the impact of the Maggi Noodles ban.

“Net domestic sales decreased by 33.8 per cent. Export sales decreased by 6.4 per cent and lower sales in Nepal due to blockage of border in the last week of September 2015,” the company said in a statement.

Suresh Narayanan, Chairman and Managing Director, Nestlé India, said: “We have commenced manufacturing and after clearance of the samples to be tested by the three accredited laboratories, are keen to reintroduce Maggi Noodles at the earliest.”

The company has now sent samples of the fresh manufacture to these three NABL accredited laboratories for tests for lead content.

The company said sales of Maggi will commence only after the results are clear and other regulatory clearances are obtained.

Nestle India’s share price closed at ₹6282.10 on the BSE down 0.69 per cent on Thursday.

Related Topics