Maggi turns the tables for Nestle India in Q2CY16

Finally it looks like the FMCG major, Nestle India is again coming back on track after the maggi episode. Company has turned profitable in Q2CY16, recording a net profit of Rs 230.84 crores. In the same period last year the company had reported a net loss of Rs 64.4 crores. 

The loss was linked to the one-time charge of Rs.451.6 crore related to the removal of Maggi noodles from the domestic market after regulator Food Safety and Standards Authority of India (FSSAI), on June 5, 2015, ordered the company to withdraw Maggi noodles, which accounted for about 30 per cent of Nestle India’s revenue.

Results of Q2CY16 are not comparable to Q2CY15, the company said in a statement to the bourses. However, the total income from operation of the company has increased by 16 per cent as compared to Q2CY15, and stands at Rs 2271.69 crores. Company’s EBITDA stands at Rs 379.53 crores, which is up by 18 per cent as compared to the corresponding quarter of the previous fiscal.

Company enjoys 57 per cent of market share currently but at one point of time the company enjoyed a market share of around 80 per cent. The scrip of the company on July 29 closed at Rs 7165.60, marginally down by 0.79 per cent.

Nestle India Ltd., is a food processing dairy company. The company's brands are Nescafe, Maggi, Milky Bar, Milo, Kit Kat, Bar One, Milk Maid, Nestea, Nestle Milk, Nestle Slim Milk, Nestle Fresh, Natural Dahi and Nestle Jeera Raita.