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Maggi effect: Nestle posts first quarterly loss in 15 years, shares drop and recover

Maggi effect: Nestle posts first quarterly loss in 15 years, shares drop and recover - Shares of Nestle India fell during opening trade on the Bombay Stock Exchange's (BSE) Sensex as the company reported its first quarterly loss in 15 years.

Hit by ban on its Maggi instant noodles, FMCG major Nestle India accounted for a standalone loss of Rs 64.40 crore for the second quarter ended on June 30, 2015 - its first quarterly loss in 15 years.

As per a report by Bloomberg, the company has not been at loss in any of the quarters dating back to 2000.

The company said, "The Maggi issue disrupted business. In addition to loss of sales from the business disruption, net sales worth Rs 288.4 crore has been reversed during the quarter in relation to Maggi noodle stocks already sold and withdrawn from the market."

In June central food safety regulator FSSAI banned Maggi noodles saying it was "unsafe and hazardous" for human consumption after discovering lead beyond permissible limit and presence of taste enhancer monosodium glutamate (MSG).

In the first half of the fiscal, Nestle's net profit on standalone basis fell by 53.22 per cent to Rs 255.88 crore as against Rs 547.02 crore in the year-ago period. Shares of Nestle India closed at Rs 6,147.30 on the BSE, down 0.62 cent from previous close.