Nestle India Friday said the latest laboratory reports have confirmed that its Maggi noodles are safe and contains lead well below the permissible limits.
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“All 90 samples, covering six variants, tested by three laboratories are clear with lead much below permissible limits,”Nestle said”.
In India a recall of its Maggi noodles is hampering sales, while in China, Nestle’s second-biggest market after the United States, the group conceded its product plans had yet to bear fruit.
The company moved the Bombay High Court against the FSSAI ban.
Also, tests that have been conducted in several other countries like the U.S., Britain, Australia and Singapore also found Maggi noodles manufactured in India are safe to consume for all the humans.
Nestle India’s shares surged 7 percent as three lab tests cleared Maggi samples. The company is working on reintroducing the products after being off the shelves for six months, he said.
Bombay High Court subsequently overturned the ban, though Nestlé said it had taken a Rs450cr (US$69m) hit in sales alone, with countless more damage sustained to its reputation.
Nestle stock trades at around 21.4 times 12-month forward earnings, above Danone (DANO.PA) and Unilever, according to StarMine, which weights analysts’ estimates by their track record.
The fresh test results are set to bolster the Swiss food giant’s prospects in India, a fast-growing consumer goods market where Nestle has been grappling with its worst public relations crisis following a nationwide ban on its Maggi instant noodles.
News of Nestle resuming Maggi production boosted the company’s shares 5.6 per cent to Rs 6,551 apiece in a Mumbai market that gained 0.8 per cent. The shares have risen nearly 20 per cent after falling to a one-year low of Rs 5,499 on June 8, the first day of trading after Maggi was banned.
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For the full year, Nestle now projects organic growth of around 4.5 percent, while the previous growth view was 5 percent.
