Moneycontrol Bureau
Nestle India was severely hit by absence of its popular brand Maggi noodles with its September quarter missing street estimates. The FMCG major's net profit slumped 60 percent to Rs 124.2 crore from Rs 311.3 crore in corresponding quarter last fiscal. During the period, net sales fell 32.1 percent to Rs 1736.2 crore (year-on-year) largely due to impact of Maggi noodles. Income slipped 32 percent to Rs 1742.36 crore from Rs 2570.4 crore (Y-o-Y).
According to CNBC-TV18 poll, Nestle India's third quarter net profit was expected to fall 26.7 percent year-on-year to Rs 228 crore and revenue was seen declining 20 percent to Rs 2,055 crore from Rs 2,570 crore in same period.
In addition to loss of sales from the business disruption net sales worth Rs 15.32 crore have been reversed during the quarter in relation to Maggi Noodles stock being withdrawn from trade partners and market, the company said.
Net domestic sales in Q3 also decreased 33.8 percent while export sales fell 6.4 percent in Q3 dented by Maggi Noodles and lower sales to Nepal due to blockage of border in the last week of September, 2015."The company had to bear an exceptional item of Rs 24.5 crore due to to estimates of loss on account of stocks withdrawn including incidental costs thereto and other related costs incurred exclusively in the ordinary course of company’s business," an official statement said.
Commenting on the results Suresh Narayanan, Chairman and Managing Director of Nestlé India said, “We have commenced manufacturing and after clearance of the samples to be tested by the three accredited laboratories, are keen to reintroduce your Maggi Noodles at the earliest.”
An official statement said that the company faced with an unusual situation and continued to deal with it during the quarter as well. “The financial results for the quarter are therefore, not comparable to previous periods,” it says. Posted by Nasrin Sultana
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