1. Nestle shares fall after company posts its first quarterly loss in 17 years

Nestle shares fall after company posts its first quarterly loss in 17 years

At 10.37 am, the shares were down 0.25 per cent on BSE at Rs 6131.95. On NSE, the shares were down 0.21 per cent at Rs 6140 during the same time.

By: | Updated: July 30, 2015 10:51 AM
Nestle India has been at the centre of India's worst food scare in a decade after local regulators reported that some packets of the company's Maggi instant noodles -- one of India's most popular snacks -- contained dangerous levels of lead. (Photo: PTI)

Nestle India on Wednesday reported a net loss of Rs 64.40 crore for the second quarter ended June 30, 2015, — its first quarterly loss in at least 17 years. (Photo: PTI)

Nestle India shares fell on Thursday after the company reported a net loss of Rs 64.40 crore on standalone basis for the second quarter ended on June 30, 2015 on account of ban on Maggi noodles in India, registering its first quarterly loss in at least 17 years.

At 10.37 am, the shares were down 0.25 per cent on BSE at Rs 6131.95. On NSE, the shares were down 0.21 per cent at Rs 6140 during the same time.

The company had posted a net profit of Rs 287.86 crore during the April-June quarter of financial year 2014-15, Nestle India said in a statement.

Nestle India’s total income from the operations during the period under review declined 19.52 per cent to Rs 1,957.01 crore as against Rs 2,431.97 crore in the same period of previous year.

“Net sales for the quarter has 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 said in a statement.

The company follows January-December financial year.

Nestle Managing Director (Designate) Suresh Narayanan said: “This quarter has been extremely challenging for the company. Nestle India would like to reassure consumers that our products are safe. Consumer trust is and will always remain the cornerstone of Nestle. Nestle India is making all efforts and will continue to engage with authorities to bring Maggi Noodles back on the shelves”.

With agency inputs

Tags: Nestle
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