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Nestle sinks in Maggi lead loss.

NESTLE India plunged into a standalone net loss of ` 64.40 crore during the second quarter ended June 30 as against a net profit of ` 287.86 crore during the April- June quarter of the previous year due to the ban on Maggi noodles. The company follows the January- December financial year.

Total income from operations during the period under review declined 19.52 per cent to ` 1,957.01 crore as against ` 2,431.97 crore in the same period of previous year, the company said in a statement. Net sales for the quarter decreased by 20.1 per cent largely due to the impact of the Maggi noodles issue. Net domestic sales decreased by 20.6 per cent.

Nestle India managing director Suresh Narayanan said, " This quarter has been extremely challenging for the company. Nestle India would like to reassure consumers that our products are safe." In addition to loss of sales from the business disruption, net sales worth ` 288.4 crore have been reversed during the quarter in relation to Maggi noodle stocks already sold and withdrawn from the market, the firm said.

Meanwhile, Maharashtra's Food and Drugs Administration ( FDA) argued in the Bombay High Court that Nestle India had burnt several tonnes of Maggi after the state banned this food snack instead of going in for a Nestle India is making all efforts and will continue to engage with authorities to bring Maggi Noodles back on the shelves. The Maggi issue disrupted business ''-- SURESH NARAYANAN, MD, NESTLE INDIA ''retest of the samples, according to a PTI report. The court was hearing a petition filed by Nestle against Food Safety and Standards Authority of India's June 5 order banning nine variants of Maggi and Maharashtra government's order prohibiting their sale. " If the company was so confident about safe features of its product, it should have come forward and requested us to go for a retest of the samples or it could have offered other samples for a fresh examination," FDA counsel Darius Khambata submitted before Justices V. M. Kanade and B. P. Colabawala.

The FDA selected at random 20 samples for the test and five of them tested positive for containing lead beyond permissible limit.

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Publication:Mail Today (New Delhi, India)
Date:Jul 30, 2015
Words:384
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