Nestle India is expected to post net profit at Rs. 260 crore in January-March quarter, down 18.8 percent from Rs. 320 crore in corresponding quarter last fiscal.
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The allegations badly dented the company’s earnings for the year ending December, when its net profit slumped to 5.63 billion rupees, from 11.85 billion rupees in 2014.
Net sales of the company during the quarter under review stood at Rs 2,295.73 crore, down 8.41 per cent as against Rs 2,506.79 crore in the same period of the previous year, Nestle said in a regulatory filing. The Bombay High Court lifted the ban on Maggi noodles in August 2015, and after more tests, it was relaunched in November. “In India, the Maggi noodles business gained back market share, but the business results were still affected by the unfavorable comparatives”, it said.
“Operating performance improved sequentially with continued focus on ramping up Maggi noodles (over 50 per cent market share regained within five months of re-launch)”, said brokerage Religare in a report.
Sales and profit have improved since the Maggi Noodles controversy hit the Swiss-based fast moving consumer goods (FMCG) company last May (see chart).
“Recent launches. are precursors to products which are in different stages of readiness for launch”, Narayanan said.
Nestle India announced its results for the first quarter ended March 2016 on Thursday after market hours.
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After a five-months ban, in November past year, Nestle India relaunched Maggi noodles in the Indian market.
