NEW DELHI: Nestlé India said its sales plunged by 20% in the second quarter, as a food-safety scandal and a large-scale Maggi Noodles recall weighed on its earnings.
Nestle India has posted disappointing second quarter (April-June) results after its most popular brand Maggi noddles was banned nationwide on food safety concerns.
It has posted a net loss of Rs 64.4 crore in Q2 from a profit of Rs 287.9 crore from year-ago period. The company incurred an one-time loss of Rs 451.7 crore due to stocks withdrawn which also includes incidental costs. Sales were badly hit by Maggi noodles ban.
During the quarter, total income was down 19.5 percent at Rs 1957 crore against Rs 2432 crore (Y-o-Y). The company says net sales Worth Rs 288.4 crore was reversed in Q1 due to withdrawal of Maggi noodles from market.
On June 5, the FSSAI ordered Nestle India to withdraw all nine variants of Maggi instant noodles from the market terming them “unsafe and hazardous” for human consumption
