Instant noodle ban overturned on Nestle’s Maggi but sales fall short

The Indian instant noodle crisis may have played a part in the shortfall in forecasts
AN INDIAN court has overturned the nationwide ban imposed on one of the country’s most popular instant noodle snacks, following an original decision to remove the product from shelves in June.

The news will come as a relief to food giant Nestle, after the company’s half-year results indicated that sales figures were slightly below analysts’ expectations. Following the decision Nestle has confirmed its sales outlook for the remainder of 2015. Paul Bulcke, Nestle chief executive, hinted that the Indian instant noodle crisis may have played some part in the slight shortfall between sales forecasts and its half-year results.

“The first-half results were in line with our expectations, broad-based across categories and geographies, solid even in difficult circumstances, and consistent with our strong performance over that time,” he said.

Nestle’s sales for the first half of 2015 rose to SFr42.8bn (£28bn), an organic growth of 4.5 per cent. Net profit was reported at SFr4.5bn. Organic growth in developed markets rose to 2.2 per cent, while growth in developed markets stayed strong at 7.3 per cent.

Indian courts have demanded the food be re-tested to ensure it reaches food safety standards before it is allowed back on shelves.