New Delhi: Nestle India today posted a 19.1 percent YoY drop in net profit in the January-March quarter of 2016 at Rs 259 crore from Rs 320 crore in corresponding quarter last fiscal. Domestic sales of the company also fell by 8.7 percent while export sales slipped by 4.8 percent.
The company said sales in Q1 decreased largely due to impact of Maggi noodles issue in 2015 and that improvement is seen mainly on the back of Maggi being re-launched
In Q1CY16, Nestle India's EBITDA fell 12.3 percent at Rs 535.5 crore versus Rs 610.7 crore while EBITDA margin stood at 23.3 percent versus 24.3 percent (YoY). The company has kept a provision for contingencies at Rs 34.6 crore.
Gross margins were at 57.2 percent versus 57.8 percent. In Q1 raw materials costs declined nut saw hike in purchases and inventory. Raw costs fell 13 percent at Rs 965 crore.
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The company, which has been in the thick of a storm over the presence of lead beyond permissible limits, also faces an emerging but formidable competitor in the form of Patanjali.
Last month, the yoga guru Ramdev had claimed that his Patanjali brand of noodles would soon take over Maggi as the top brand in the country. Reports also suggested that Patanjali was ahead of its companies with its collaborations with multi-brand retail chains in terms of distribution.
