Nestle India on Thursday reported a year-on-year decline of 19.13% in its net profit at Rs 259 crore on the back of the Maggi noodles issue in 2015. This is the second consecutive quarter in FY’15-16 which saw a decline in the FMCG major’s net profit. Nestle’s operating margins at 19.38%, were down 111 basis points year-on-year against 20.49% from the previous year’s quarter.
“Our results show further improvement in sequential performance, both in sales and margins. This is extremely satisfying as we move ahead and rebuild our business, particularly Maggi noodles, after a tough year,” said Suresh Narayanan, chairman and managing director of Nestle India.
Maggi noodles regained over 50% of market share within five months of its re-launch in April 2016.The quarter ending March 2016 recorded net sales of R2295.73 crore, down 8.41% and operating profits of R446.42 crore, down 13.43%.
The company said that they will be, in the near future, increase its penetration in their businesses of milk and nutrition, chocolate and confectionery and coffee and beverages.
“We are gearing up for volume growth with renewed focus and commitment on consumer relevant innovation and renovation. I remain optimistic about our future performances and I am confident about our teams’ ability and commitment to make it happen,” said Narayanan.
The company’s Board of Directors declared an interim dividend of R12 per equity share for the year 2016. Nestle India Limited share on Thursday closed 1.90% up at Rs 5703.85 on BSE.