Nes­tle Q4 Profit Falls 8.7% on De­mon­eti­sa­tion

The Economic Times - - Brands: Creating Desire - Our Bureau

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

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