Nestle Q4 Profit Falls 8.7% on Demonetisation
New Delhi: Foods maker Nestle India reported 8.66% on year decline in its net profit for the fourth quarter ended December at ₹ 167.3 crore, largely because of the demonetisation drive in November.
“Net domestic sales for the quarter have been impacted by the withdrawal of high denomination currency notes in circulation,” the company said in a statement on Wednesday. The maker of Maggi noodles and KitKat chocolates reported 16.17% increase in its fourth quarter sales at ₹ 2,261.2 crore, but said the numbers are not entirely comparable with the results of the corresponding periods due to Maggi noodles withdrawal in 2015.
National food regulator Food Safety & Standards Authority of India (FSSAI) had banned Maggi in June 2015 on allegations that it contained lead in excess of permissible levels. Maggi returned to stores in November that year after clearances from government authorised labs.
Nestle India chairman Suresh Narayanan said the company has since regained leadership in the noodles category with close to 60% market share. “Innovation and renovation has been the key platform for Nestle and the year saw us launch over 30 new products and variants, across all categories,” he said.
FILE PHOTO Nestle India chairman Suresh Narayanan