Nestle India Q1 Profit Falls 19% : Ban on Maggi in 2015 Affects Sales
Nestle India declared their performance results for 1st quarter of 2016 which is ended in March 2016. Nestle India announced its Q1 results on 12 May 2016 after market hours. Nestle has reported almost 19.13% profit falls in net profit at Rs 259 Crore.
Nestle India had registered their Q1 Profit in 2015 of Rs 320 Crore. This year, Ban on Nestle Maggi affected the Company’s results. Net sales of the company got down 8.53 per cent YoY to Rs 2,295.73 crore. According to Nestle India, topline and bottomline of the company impacted in Jan-March due to the impact of Maggi Noodles issue in 2015.
Total Expenditure of the company slipped by 7.23 per cent yoy to Rs 1,856.04 crore for the quarter ended March 2016 while it was Rs 2000.75 crore in Jan-March 2015. The board of Nestle India declared an interim dividend for 2016 of Rs 12 per equity share on face value of Rs 10 per equity share. Dividend will be paid by the company on and from May 31, 2016.
In Maggi Ban Controversy, Company’s maggi noodles was banned for almost 6 months and it gets cleanchit in November 2015, after tests carried out at Indian government-accredited laboratories showed the noodles were safe for consumption.
Last June, the Food Safety & Standards Authority of India ( FSSAI) had banned Maggi following allegations that the popular snack contained lead in excess of permissible levels and that there was mislabeling related to flavour enhancer monosodium glutamate. After five months of absence, Maggi returned to shelves last November after multiple clearances from government-certified laboratories