Companies

Maggi Noodles fiasco dents Nestle India profit in Q1

Our Bureau New Delhi | Updated on January 20, 2018 Published on May 12, 2016

Suresh Narayanan, Chairman and Managing Director, Nestle India

Domestic sales down 8.7%, exports fell 4.8%



Nestle India has posted a net profit of ₹259 crore, down 19.06 per cent for the quarter ended March, compared with ₹320 crore in the corresponding period last year.

The company, which follows the January-December period as the financial year, said the results for the quarter were impacted due to the Maggi Noodles issue last year.

Net sales stood at ₹2,296 crore, down 8.4 per cent.

The company said while the net domestic sales decreased by 8.7 per cent, export sales fell by 4.8 per cent.

“The board of directors declared an interim dividend of ₹12 per equity share for 2016 (face value ₹10 per equity share) amounting to ₹116 crore, which will be paid on and from May 31,” the company said in a statement. Suresh Narayanan, Chairman and Managing Director, Nestle India, said: “Our results show further improvement in sequential performance, both in sales and margins.

This is extremely satisfying as we move ahead and rebuild our business, particularly Maggi Noodles, after a tough year.”

He said Maggi Noodles has regained leadership with over 50 per cent market share within five months of the re-launch.

“We are gearing up for volume growth with renewed focus and commitment on consumer relevant innovation and renovation,” he added.

Variants re-launched

While the company has by now re-launched four variants of Maggi Noodles, it has also been focusing on expanding presence in other categories with new launches such as Munch Nuts, Kitkat Duo, Nestle a+ Grekyo, among others.

“We are working on increasing penetration for all our businesses, including milk and nutrition; chocolate and confectionary; and coffee and beverages,” Naryanan added.

The company’s shares closed at ₹5,703.85 on the BSE on Thursday, up 1.90 per cent.

Published on May 12, 2016
This article is closed for comments.
Please Email the Editor