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Maggi ban impacts Nestle show in AOA

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The noodles controversy in India last year impacted ’s performance in Asia, Oceania and sub-Saharan Africa regions.

Maggi ban impacts Nestle show in AOA
The food maker took a hit of Rs 450 crore, having destroyed over 30,000 tonnes of Maggi.

The Indian food regulator had imposed a ban on sale of Maggi in June 2015. It was alleged that some samples of the product contained unsafe level of lead and flavour enhancer monosodium glutamate. Nestle had to recall the product that accounted for 30 per cent of its sale topline. In November, after getting a clearance from the Bombay High Court, the back was back on the shelves.

In its full-year earnings declaration, Nestle, which follows the January-December calendar, had said growth of its zone AOA (Asia, Oceania and Africa) region was at 0.5 per cent, impacted by the Maggi noodles issue in India. Nestle India had reported a decline of 17.2 per cent in net sales for the year ended December 2015, while its net profit fell to Rs 563 crore, from Rs 1,185 crore in the previous year.

The food maker, which also makes KitKat chocolate and Nescafe coffee, took a hit of Rs 450 crore, having destroyed over 30,000 tonnes of Maggi. The firm had reported its first loss in three decades at Rs 64 crore in the April-June quarter of 2015.