While investors holding the Nestle stock gained more than those holding other FMCG firms last year, the Maggi recall has put them in a spot of bother. Maggi accounts for 20% of Nestle India’s revenues and 25% of its operating profits. The food safety crisis will hurt its operating leverage as ‘prepared dishes’ was the only segment where it had grown volumes in 2014. In fact, Nestle’s sales growth in 2014 was the lowest since 2004.
