The quarter that ended on March 31 wasn’t a good one for
As per the company statement, net profit for the quarter was Rs 259 crore as compared to Rs 320 crore for the corresponding quarter in 2015.
"Results for the quarter have been impacted by the Maggi noodles issue in 2015," the company said in a statement.
Talking of net sales, they dipped 8.5% to Rs 2,296 crore, which was below what analysts had estimated. Not only this, the company's total expenditure too fell 7.2% and stood at Rs 1,856 crore during the quarter.
For the quarter that ended on December 31, 2015, Nestle India had reported 43.8% year-on-year decline in net profit at Rs 183.19.
The ban on Maggi was placed by the Food Safety & Standards Authority of India (FSSAI) had banned after allegations that it contained more lead than allowed, and that the label didn’t provide the correct information regarding the flavour enhancer MSG (monosodium glutamate). It had taken five months for Maggi to return to markets.
Also read: Nestle in trouble again for alleged 'sub-standard' Maggi
Nonetheless, the company is treading on the road to recovery, with Maggi regaining leadership with over 50% share within five months of the re-launch last year. However, its market share is much lower as compared to what it had before being banned, which was more than 75%.
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