Home Progressive Grocer Nestle India Q3 profit falls 60% on Maggi fracas

Nestle India Q3 profit falls 60% on Maggi fracas

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Nestlé India Ltd. reported a 60% drop in its net profit for the July to September period as its sales fell sharply after the withdrawal of noodles from retail shelves during this quarter.

Nestle to diversify into premium coffee, pet care, skin health cereals segment
The company, as part of diversification, has launched 35 products in last six months and may remove some of those which are not performing well

The Indian arm of Nestlé SA said its profit slipped to 1.24 billion rupees (USD19 million) in the last quarter, compared with 3.11 billion rupees a year earlier. Its revenue declined 32% to 17.36 billion rupees.

“The Maggi issue disrupted business,” the company said in a release to BSE.

Export sales also decreased by 6.4% on the scare and lower sales to Nepal due to the blockage of the country’s border with India in the last week of September, the company added.

India’s food safety watchdog slapped a nationwide ban on the noodles in June, saying lead levels exceeded statutory limits. But the Bombay High Court, overturned the ruling two months later, calling it “arbitrary” and ordered fresh tests.

However, the company said its own tests didn’t detect high levels of the toxic metal and a court ruling in August ordered Indian authorities retest samples of the noodles. Fresh tests cleared the samples earlier this month.

Nestlé India has resumed manufacturing the noodles in India and is keen to reintroduce its Maggi 2-Minute Noodles to shelves at the earliest, said , chairman and managing director of the company.

Also Read: Nestle restarts Maggi production in India