Nestle’s cost of materials consumed declined to Rs 718.80 crore in Q2-2015 as compared to the Rs 1110.50 crore in Q1-2015 and Rs 1123.47 crore in Q2-2014. Suresh Narayanan, the new head of Nestlé India, said the company is “making all efforts and will continue to engage with authorities to bring Maggi noodles back on the shelves”.
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For those who have not checked out the figures, here it is.
The company had posted a net profit of Rs287. This compares with a profit of Rs 288 crore a year earlier. “Net sales decreased largely due to impact of Maggi noodles issue”.
Net sales declined 20 per cent to Rs 1,933.84 crore during the quarter from Rs 2,418.9 crore in the year-ago period.
Shares of the company traded 0.1 percent lower at 12:35 pm.
The scandal, which broke in Uttar Pradesh after the authorities detected elevated lead and MSG in routine testing, has seen a number of Indian states, including Gujarat and Tamil Nadu ban the sale of Maggi noodles. In the 1990s, Darius Ardeshir was the company’s India MD.
Net earnings for your 1/4 down 20.one- % immensely on account of the outcome along the Maggi pastas challenge. “Since, their rivals in the category couldn’t do much, they thought they were invincible”, said Harminder Sahni, founder and MD, Wazir Advisors. The food major earns around a quarter of its revenue from Maggi. The Board of Directors at their meeting held on July 29, 2015 based on the recommendation of the Nomination and Remuneration Committee, appointed Mr., Suresh Narayanan as Managing Director of the Company effective from August 01, 2015, subject to approvals.
Although the numbers came after market hours, the Nestle India stock today ended marginally lower at Rs 6,147.30, a drop of Rs 38.30 from the previous close on the BSE.
Sales fell 20% to INR19.34bn.
“Nestle’s growth will remain under pressure until Maggi is out of the mess”. FSSAI also said that it was ready to give a hearing to the company.
Mr Shah said if speculators already keep the possesses of Nestle India thereafter “they ought to maintain it, however there isn’t a are required to…” “The Maggi issue disrupted business”. While the company’s net profit crossed Rs 300 crore mark for the first time in September 2014, it hit an all-time high of Rs 326 crore in December.
However, it is a long haul for the company, cites a domestic brokerage firm.
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Also read: 2-minute noodle Maggi faces ban?
