New Delhi: Nestle India has reported a 19.6 percent
decline in net profit in the first quarter of 2016, ended on March 31.
Surprisingly, Maggi’s share had regained with over 50 percent within five
months and had also repositioned in the leading place. Reports are that Nestle
India has published its annual net profit report on Thursday. The Swiss food
and beverage company follows a January to December accounting year.
Compared with 2015, Nestle India had Rs. 320 crore
of net profit while at 2016 the company had made only Rs. 259 crore, a downfall
of about 19.6 percent for the corresponding period last year. “Results for the
quarter have been impacted by the Maggi noodles issue in 2015,” Nestle said in
an official release yesterday.
Meanwhile, following a notice by the Food Safety
& Standards Authority of India (FSSAI) Maggi was banned with allegation of
comprising excess level of lead and ‘mislabeling’ of monosodium glutamate.
Monosodium glutamate is a flavor enhancer but its side effects remained
controversial. However, with almost five months of absence from the market,
Maggi was back at last November following clearance certificates from the
government-certified laboratories.
Nestle India Chairman Suresh Narayan asserted: “Our
results show improvement in sequential performance both in sales and margins,
as we rebuild our business, particularly Maggi noodles after a tough year.”
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