Nestle India on Thursday missed Street estimates by posting a 60% drop in its net profit at Rs 124.2 crore during the July-September quarter largely due to the absence of Maggi noodles from its portfolio.
Net sales fell 32.1% to Rs 1736.2 crore, which was also below estimates. In addition to loss of sales from the business disruption net sales worth Rs 15.32 crore were reversed during the quarter in relation to Maggi noodles stock being withdrawn from trade partners and market, the company said.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% while export sales fell 6.4% in Q3 (the company follows the calendar year as its fiscal year) 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“The company had to bear an exceptional item of R24.5 crore due to estimates of loss on account of stocks withdrawn including incidental costs there to and other related costs incurred exclusively in the ordinary course,” a company statement said.
Commenting on the results Suresh Narayanan, chairman and MD of Nestlé India said, “We have commenced manufacturing and after clearance of the samples… we are keen to reintroduce your Maggi noodles at the earliest.”