After facing Maggi ban, Nestle India reports 43.87% decline in profits for fourth quarter

QUICK PILL

• Hit by the Maggi ban, Nestle India on Friday reported a 43.87% decline in profit at Rs 183.19 crore for the fourth quarter ended December 31, 2015.

• For the year ended December 2015, Nestle India\'s net profit stood at Rs 563.27 crore and net sales at Rs 8,123.27 crore.

Hit by the Maggi ban, Nestle India on Friday reported 43.87 per cent decline in profit at Rs 183.19 crore for the fourth quarter ended 31 December 2015.

The company, which follows the January-December financial year, had posted a net profit of Rs 326.38 crore during the October-December quarter of 2014-15.

Net sales of the company during the quarter under review rose to Rs 1,946.44 crore, down 22.64 per cent compared to Rs 2,516.1 crore in the same period of previous year, Nestle said in a BSE filing.

For the year ended December 2015, Nestle India's net profit stood at Rs 563.27 crore and net sales at Rs 8,123.27 crore.

Nestle India Chairman and Managing Director Suresh Narayanan said: "...Despite the exceptional toll that the Maggi noodles crisis took on our financials, our optimism about the future helps us with a healthy dividend payout. The high point of the quarter has been the return of MAGGI Noodles to the market and the consumers to whom it rightfully belongs."

Fighting the Maggi ban:

The company said that it faced an unusual situation with Maggi noodles that impacted its operations during the second, third, and fourth quarters.

Net sales of Rs 303.4 crore have been reversed during the full year ended 31 December 2015, in relation to Maggi Noodles stock being withdrawn from trade partners and market, the company said.

Meanwhile, in a separate filing, Nestle India said its board has recommended a final dividend for the year 2015 of Rs 18.50 per equity shares of Rs 10 each.

In November last year, Nestle India relaunched Maggi noodles in the Indian market, five months after it was banned by the FSSAI following a Bombay High Court order. Shares of Nestle India closed at Rs 5,056.85 apiece at BSE, down 3.21 per cent from the previous close.

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-PTI