Nestlé India missed street expectations on Thursday, with the multi-national food giant reporting a 19% drop in the January-March quarter net profit to Rs 259 crore as it struggles to regain lost market share of Maggi noodles, which was temporarily banned last year over safety concerns.
Analysts on an average had expected the company to report a net profit of Rs 287 crore, as per a Thomson Reuters poll.
The company, which follows January-December as its financial year, saw net sales drop 8% from a year ago to Rs 2,296 crore.
“Results for the quarter have been impacted by the Maggi noodles issue in 2015,” it said.
The popular Maggi noodles were off the shelves for over six months. The Bombay High Court lifted the ban on Maggi noodles in August 2015, and after more tests, it was relaunched in November.
Compared with the quarter ended December 31, 2015, the company’s net profit was up 41%, while net sales rose 18%, helped by the relaunch.
Since its re-launch, Maggi has regained 50% market share in noodles, the company said.