India business grew despite disruptive impact of demonetisation: Nestle

NEW DELHI: Swiss foods firm Nestle has said its business in India grew strongly “despite some disruptive impact from demonetisation” at the end of the year. Maggi noodles continued to regain market share. Confectionery also did well with KitKat, the company said in a statement issued from Nestle’s headquarters at Vevey, while announcing its fourth quarter earnings.

The company said it posted 3.2% organic growth and 19% trading operating profit margin, adding that its AOA zone (Asia Oceania Africa) zone's emerging markets had a good year overall with growth accelerating in most businesses.

“The AOA zone saw real internal growth and organic growth gain increasing momentum throughout the year, with market shares recovering and almost all markets contributing,” the maker of Maggi noodles and Cerelac infant foods said.

For the fourth quarter, Nestle reported a net profit decline of 8.66% year on year at Rs 167.3 crore, on account of higher taxes and contingencies mainly on account of costs related to litigation and related disputes, the company said. It said tax expenses went up 36% year-on-year in the quarter.

The company said in a statement that Maggi’s share was close to 60% now within the instant noodles space. The India arm of the Swiss foods maker said results for the quarter and full year ended 31st December, 2016 are not entirely comparable with the results of the corresponding periods due to Maggi noodles withdrawal in 2015.